As Warren Buffett, 95, prepares to step down, Berkshire Hathaway's cash reserves are reaching a new historical high—$382 billion.
On Saturday, November 1, the group's latest financial report showed that as of the third quarter, the group's cash reserves had reached $381.7 billion, an increase of $37.6 billion from the previous quarter, equivalent to an increase of $420 million in cash per day, or $17 million in cash per hour.
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Behind this figure is the company's continued selling. Over the past three years, Berkshire has cumulatively net sold approximately $184 billion in stocks, with another $6.1 billion in common stock sold in the third quarter alone.
&#34;In Buffett's view, there are currently not many opportunities,&#34; commented Jim Shanahan, an analyst at Edward Jones.
Berkshire's latest financial report seems to send a signal to the market: in Buffett's eyes, the current selling opportunities may far exceed buying ones.
In addition to reducing its stock investment portfolio, Berkshire has also maintained great restraint in repurchasing its own shares. Since the second quarter of 2024, the company has not conducted any repurchases.
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This giant, spanning insurance, railroads, and utilities, is accumulating massive &#34;ammunition&#34; with unprecedented caution through continuous stock sales and a pause in repurchases, leaving significant room for imagination and challenges in the upcoming &#34;post-Buffett era.&#34;
<h2>Selling Far Exceeds Buying</h2>
Specifically regarding Berkshire Hathaway's investment activities, in the group's $283.2 billion stock investment portfolio, the number of stocks sold has exceeded the number bought for the 12th consecutive quarter.
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The largest sold stocks include Apple Inc., American Express, and Bank of America.
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For Berkshire Hathaway's supporters, this may be somewhat frustrating. Earlier this year, Buffett seemed to begin actively seeking acquisition opportunities, first spending $1.6 billion to acquire shares in UnitedHealth Group, and last month acquiring OxyChem for $9.7 billion
But this famous billionaire remained inactive in the third quarter. Berkshire Hathaway sold off $6.1 billion worth of stocks during the quarter.
Since Buffett announced he would step down as CEO at the annual shareholder meeting in May, Berkshire's Class A shares have dropped about 12%, while the S&amp;P 500 index has risen about 20% during the same period.
The ongoing sell-off and pause in buybacks &#34;may explain why Berkshire's stock price has significantly lagged behind the market and has now fallen back to levels seen last August.&#34;
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&#34;I think this sends a very strong message to shareholders. If they aren't buying back their own stock, why should you?&#34; said Cathy Seifert, an analyst at CFRA Research.
Despite the cautious investment operations, the fundamentals of Berkshire's businesses remain solid. The financial report shows that the company's operating profit in the third quarter increased by 34% year-on-year, reaching $13.5 billion. This was mainly due to its insurance business, where the company's underwriting profit doubled over the past 12 months to $2.4 billion.
<h2>Challenges and Opportunities in the &#34;Post-Buffett Era&#34;</h2>
Over the past 60 years, Buffett has built Berkshire Hathaway into one of the largest investment companies in the world.
In two months, at the end of this year, Buffett will officially step down as CEO, with 62-year-old Greg Abel, head of non-insurance operations, taking over. Buffett will continue to serve as chairman. Abel will take over a business empire with nearly 200 subsidiaries and $382 billion in cash.
Effectively deploying this massive amount of capital will be Abel's primary challenge. Last month, a deal led by Abel—acquiring the petrochemical business of Occidental Petroleum for $9.7 billion in cash—was seen as a rehearsal for capital operations in the &#34;post-Buffett era.&#34;
Some long-term investors remain optimistic. Chris Bloomstran, president and chief investment officer of Semper Augustus Investments and a Berkshire shareholder, believes, &#34;Greg is perfectly suited to take the reins from Warren.&#34;
However, some investors appear more impatient. Tom Russo, a partner at Gardner Russo &amp; Quinn, pointed out, &#34;Impatient investors are eager for Berkshire to deploy its cash and have set their sights elsewhere.&#34;
Regardless, Abel and his team will hold significant funds, searching for the next &#34;elephant&#34; that belongs to Berkshire in a market full of uncertainties.
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The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk

At 95 years old, Buffett's cash reserves at Berkshire Hathaway reached a historic high of $382 billion before his retirement. The company has cumulatively net sold approximately $184 billion in stocks over the past three years, with an additional $6.1 billion sold in the third quarter alone. Analysts point out that Buffett believes the current market presents more selling opportunities than buying, and there have been no stock buybacks since the second quarter of 2024. Berkshire's investment activities show that the number of stocks sold has exceeded those bought for 12 consecutive quarters, with major sell-offs including Apple, American Express, and Bank of America

- Berkshire Hathaway's cash reserves have reached a record high of $ 382 billion as Warren Buffett prepares to step down.  
- The company has sold approximately $ 184 billion in stocks over the past three years, with a notable $ 6.1 billion in stock sales in the third quarter alone, signaling a cautious investment strategy.  
- As Buffett transitions leadership to Greg Abel, the challenge will be effectively deploying this substantial cash reserve in a volatile market.

Wallstreetcn

Bank of America

American Express

Apple

In the third quarter, sold another $6.1 billion, no repurchases for five consecutive quarters, and a total of $184 billion in stock sold over three years! What Buffett left for Berkshire is: $382 billion in cash