2023-11-05 18:22:43
By Marie Bartnik
Published 2 hours ago, Updated 2 hours ago
Warren Buffett, photographed July 13, 2023 in Sun Valley, Idaho. KEVIN DIETSCH/Getty Images via AFP
The 93-year-old financier continues to sell assets, without reinvesting in proportion to his sales.
The level of cash held by Berkshire Hathaway, the company of American billionaire Warren Buffett, reached a record level of $157 billion in the third quarter. This is 10 billion more than in the previous quarter. The 93-year-old financier, famous for his successful investments and followed very closely by analysts, continues to sell assets, without reinvesting to the extent of his sales, for lack of investment opportunities.
Berkshire Hathaway sold $5 billion worth of shares in the third quarter alone, and $40 billion since the start of the year. Among the assets sold are shares in the oil company Chevron. Warren Buffett allocated the proceeds from these stock sales to cash or US Treasury bills. It therefore has considerable resources that can be quickly mobilized to make future acquisitions.
The value of Berkshire Hathaway’s stock portfolio itself fell in the third quarter, for the first time in a year, in the wake of the stock markets. This is today valued at $319 billion, compared to $353 billion at the end of June. Berkshire Hathaway’s stake in Apple alone fell by $20 billion, recalls the Financial Timesbecause Apple shares lost 12% of their value.
Estimating the value of his own stock undervalued, Warren Buffett also bought back $1.1 billion worth of Berkshire Hathaway shares, after $1.4 billion in the second quarter. The operational activity of the company has proven to be successful. The value of the US Treasuries it holds has increased and the insurance business has been doing well. Berkshire Hathaway’s operating profit increased by 41% in the third quarter.
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