Warren Buffett continues to reduce holdings in old stocks like dark and Bank of America the cash fund in his company, Berkshire Hathaway has already collected over 300 billion dollars, these have caused many to ask – is Warren Buffett anticipating a collapse in the market? Here is an answer, at least partially.
during the third quarter, Berkshire Hathaway Investment in shares Domino’s Pizza and a supplier of equipment for swimming pools pool.
The moves were revealed in documents filed with the US Securities and Exchange Commission. The documents even confirm that Buffett sold a quarter of his large holding in Apple. Berkshire has gradually reduced its holding in Apple, from $175 billion at the beginning of the year to about $70 billion at the end of September. However, Apple still constitutes About a quarter of the company’s investment portfolio, estimated at 266 billion dollars.
Berkshire, which recently crossed the trillion-dollar mark in market value, sold about 235 million shares of Bank of America during the quarter, a report it is required to publish since it owns more than 10% of the bank’s shares. At the same time, it added and purchased 1.3 million shares of Domino’s Pizza, worth approximately $550 million at the end of the quarter. In addition, it purchased 404,000 shares worth $152 million of Pool Corp. As a result, the shares of both companies soared.
Buffett sold Berkshire’s remaining holdings in the company Flour and Decor Holdings in the last quarter, after already reducing the holding in the previous quarter. Buffett also reduced his holding in the cosmetics chain by 95% Ulta Beauty After entering the investment only in the second quarter. In addition, he reduced holdings inCapital One Financial and in the fintech company UN Holdings .
Buffett also increased investment in airline Heico Corp with the purchase of 5,445 shares, bringing the total holding to about 1.05 million shares worth more than $200 million.
The mountain of cash
Warren Buffett has never accumulated so much cash in his company’s coffers – a whopping $325 billion in cash and cash equivalents, mostly in government bonds. That’s a lot – to appreciate the sheer scale of this hoarding, consider that it would allow Berkshire to write a ch k, and it will still have a surplus, for the purchase of all corporations listed in the USA (except for the 25 companies with the highest market value), companies such as Walt Disney, Goldman Sachs, Pfizer, General Electric or AT&T.
At the beginning of the month she published Berkshire Hathaway’s third quarter reports. The company reported quarterly revenues of $93 billion, almost unchanged from the corresponding quarter last year, and a net profit of $26.3 billion, compared to a loss in the corresponding quarter. For the first time in six years, the company did not purchase any more of its own shares (own purchase).
The reports highlighted a significant damage to the profits of the insurance business, mainly due to Hurricane Helen, which hit the southeastern coast of the United States during September. But the really hard blow was even before Buffett: Hurricane Milton, which caused a lot of damage in Florida in October. “We are currently assessing the pre-tax losses from Hurricane Milton In the amount of 1.3-1.5 billion dollars,” Berkshire wrote, and these will be reflected in the next report.
Berkshire’s cash pot includes cash and government bonds. With the latter now yielding handsome returns, Buffett appears to have taken as many tokens off the table as he sees no upside in risky stocks. Publicly, he has said he’d be happy to spend the cash.
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