## Warren Buffett Cuts Apple Stake Again, Berkshire Hathaway’s Earnings Dip
Warren Buffett’s Berkshire Hathaway experienced a slight dip in third-quarter operating earnings, attributed to a decline in the insurance underwriting segment. The Omaha-based company’s quarterly operating earnings fell to $10.09 billion, a 6% decrease from the $10.761 billion reported in the same period last year.
Despite the drop in earnings, Berkshire Hathaway’s cash reserves reached a record high of $325.2 billion by the end of September, up from $276.9 billion in the second quarter. This surge in cash reserves can be attributed to Buffett’s continued selling of stocks, including a substantial portion of his Apple stake.
This marks the fourth consecutive quarter where Buffett has reduced his holdings in Apple, his largest equity investment. While the exact number of shares sold remains undisclosed, estimates suggest Buffett sold approximately a quarter of his stake, leaving him with around 300 million shares. This move has significantly reduced his overall Apple investment by 67.2% compared to the end of last year’s third quarter.
Berkshire Hathaway’s portfolio also includes significant investments in other companies. As of September 30, 2024, the company held 26.9% of Kraft Heinz’s outstanding shares and 28.2% of Occidental Petroleum’s outstanding shares. The top five companies in Berkshire Hathaway’s portfolio, as of September 2024, were American Express, Apple, Bank of America, Coca-Cola, and Chevron.
Berkshire Hathaway’s Third-Quarter Performance in Detail:
* Net earnings for the third quarter reached $18,272 per average equivalent Class A share, a significant improvement from the $(8,824) loss per share recorded in the same period the previous year.
* Net earnings for Class B shares amounted to $12.18 per average equivalent share, compared to $(5.88) per share in the year-ago period.
* Insurance underwriting generated earnings of $750 million in the third quarter, a considerable decrease from the $2.42 billion earned in the same period last year.
* Earnings from insurance investment income reached $3.664 billion, exceeding the $2.470 billion earned in the previous year.
Buffett, renowned as the “Oracle of Omaha” and one of the world’s most celebrated investors, continues to manage Berkshire Hathaway with his characteristic focus on long-term value creation. His current net worth, according to Forbes, stands at $142.2 billion.
