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Warren Buffett’s Berkshire Hathaway cashed in another $6 billion of stocks in his penultimate quarter as CEO

Warren Buffett
Warren Buffett

  • Warren Buffett just published the details of his penultimate quarter as Berkshire Hathaway CEO.
  • Berkshire’s operating profits soared and its cash pile hit a new high.
  • But Buffett once again struggled to find bargains.

Warren Buffett‘s penultimate quarter as Berkshire Hathaway CEO saw the company’s operating earnings soar and its cash pile grow to a fresh record of over $350 billion, but the legendary investor once again struggled to find bargains.

Berkshire’s third-quarter earnings report on Saturday showed a 34% year-on-year surge in operating income to $13.5 billion, as insurance underwriting income nearly tripled to $2.4 billion.

Profits also climbed at the BNSF Railway and in the manufacturing, service, and retailing division. The Berkshire Hathaway Energy and the insurance investment segment saw a drop in operating earnings.

Buffett, 95, and his team spent $6.4 billion on stocks but sold $12.5 billion worth, making them net sellers for the 12th quarter in a row. Berkshire will disclose which US stocks it bought and sold in a regulatory filing later this month.

The legendary stock picker didn’t buy back any Berkshire shares for a fifth consecutive quarter, signaling that even his own company’s stock didn’t strike him as a bargain. The stock sales and lack of buybacks contributed to Berkshire’s cash pile swelling to $358 billion, or $382 billion if payables for Treasury purchases are excluded.

Buffett rocked the business world in May when he broke the news to an arena full of Berkshire shareholders that he would step down as CEO at the end of this year after 55 years in the role.

Greg Abel, who leads Berkshire’s non-insurance businesses, is set to succeed him, with Buffett staying on as chairman.

It hasn’t been a total deal drought for Buffett as he prepares to hand over the reins, however.

On October 2, Berkshire announced it had agreed to pay nearly $10 billion to acquire OxyChem, a chemicals business, from Occidental Petroleum, which counts Berkshire as one of its largest shareholders.

Read the original article on Business Insider
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