Oh, Warren Buffett, the Oracle of Omaha. His company, Berkshire Hathaway, is sitting on a cool $325 billion in cash. That’s a lot of zeroes, folks. This slick move came after he decided to part ways with some of his steadfast investments in Apple and Bank of America shares. Why the big sale? Let’s dig a little deeper, shall we?
In its latest update, sent out to all the Wall Street aficionados, Berkshire unloaded even more Apple stock in the third quarter. Last year, their investment in the iPhone maker was standing tall at a whopping $174.3 billion. Fast forward to the end of September, it’s shrunk down to $69.9 billion. Talk about slimming down, right?
But Warren and his gang aren’t just shedding stocks. They’re also raking in some serious dough from their various business ventures. Third quarter profits skyrocketed, hitting $26.25 billion, or $18,272 per Class A share. The previous year was a bit gloomy with a loss of $12.77 billion, or $8,824 per Class A share. A turnaround like that surely makes you curious. Check out the full report [here](https://www.cnbc.com/2023/11/04/warren-buffetts-berkshire-hathaway-q3-earnings.html).
A guy in a mask strolls past a Berkshire Hathaway HomeServices office in good old San Francisco. This shot was snapped back in 2021, but who’s keeping track of time these days? Image courtesy of David Paul Morris/Bloomberg via Getty Images.
Now, Warren has this saying. He tells investors they should read into Berkshire’s operating earnings, not just nibble on the stock market performances. The company’s portfolio is like a rollercoaster—what they buy or sell can swing profits around quarter to quarter.
Buffet’s Bread and Butter: Operating Earnings
- Operating earnings dipped 6%, now at $10.09 billion, or $7,023.01 per Class A share.
- Last year? It was $10.8 billion, or $7,437.15 per Class A share.
- Analysts at FactSet had pegged earnings at $7,335.11 per Class A share, so surprise, surprise!
And how did the revenue party turn out? Not much changed, holding steady at $92.995 billion. Compare that to last year’s $93.21 billion, it’s almost a tie. However, it slipped past FactSet’s guesstimate of $92.231 billion. See more on [Berkshire’s revenue performance](https://www.barrons.com/articles/berkshire-hathaway-earnings-operating-earnings-dip-slightly-2023-11-04).
A Peek into the Berkshire Empire
- They own a little bit of everything: Geico, BNSF railroad, utilities, and even some candy shops.
- Brands like Dairy Queen and See’s Candy sweeten their portfolio.
For a deeper dive, CBS News has more on the [Berkshire updates](https://www.cbsnews.com/section/business/).
Here’s hoping Berkshire’s shopping spree resumes soon. Maybe they’re eyeing the next big thing, or perhaps they enjoy the security of binging on cash reserves while the world around them spirals. If you ask Buffett, though, he’s just doing what he does best—keeping everyone on their toes.
