Berkshire Hathaway's cash reserves have reached a record high of over $300 billion, with the conglomerate's cash pile growing to $325.2 billion by the end of September.
Warren Buffett, the chairman and CEO of Berkshire Hathaway, has been selling off significant portions of his equity holdings, including major investments like Apple and Bank of America. This strategy is driven by Buffett's cautious outlook on the market, as he refrains from repurchasing shares of Berkshire Hathaway. The lack of buybacks aligns with Buffett's philosophy of only repurchasing shares when he believes the price is below the company's intrinsic value.
Despite the positive performance of the stock market this year, Buffett remains conservative in his approach. Berkshire Hathaway achieved a market capitalization milestone of $1 trillion in the third quarter, but its operating earnings for the same period declined by about 6% due to weaker insurance underwriting results. Buffett's cautious stance is influenced by rising interest rates and concerns about the growing fiscal deficit. He has hinted at the possibility of selling stock holdings in anticipation of potential increases in capital gains tax rates.
As Berkshire Hathaway continues to build its cash reserves, its future moves will be closely monitored by investors and analysts, given the ongoing economic uncertainties and the potential for shifts in fiscal policy.