Berkshire (BRK.Q3 operating profit decreased by 6% year-on-year, cash reserves reached a record high of $325.2 billion, reduced holdings in Apple by 25%

According to the Zhitong Finance APP, Berkshire Hathaway (BRK.A.US, BRK.B.US) reported its third-quarter results, showing revenue of $92.995 billion, exceeding market expectations of $83.2 billion, and down from $93.2 billion in the same period last year, a year-on-year decrease of 0.2%, compared to $93.7 billion in the second quarter; net profit attributable to shareholders was $26.251 billion, compared to a loss of $12.767 billion in the same period last year. The earnings per share for Class A shares was $18,272, compared to a loss of $8,824 in the same period last year; the earnings per share for Class B shares was $12.18, compared to a loss of $5.88 in the same period last year; operating profit was $10.09 billion, down 6% year-on-year, as the insurance underwriting operating profit fell sharply from $2.422 billion in the same period last year to $750 million, with market expectations for total operating profit at $10.9 billion, compared to $10.761 billion in the same period last year.

The company continues to avoid major acquisitions while reducing some of its most significant equity holdings. As of September 30, 2024, the company's total cash, cash equivalents, and short-term U.S. securities reached a record high, exceeding $300 billion, reaching $325.21 billion, compared to $276.9 billion as of June 30.

The company did not repurchase any shares in the third quarter, and only repurchased $345 million in the previous quarter, with a total repurchase amount of $2.9 billion in the first nine months.

Investment income for the third quarter was $16.16 billion, totaling $36.391 billion for the first nine months, compared to a net loss of $23.528 billion in the same period last year.

As of September 30, 2024, the insurance float (i.e., net liabilities under insurance contracts) was approximately $174 billion, an increase of about $5 billion from the end of 2023.

Berkshire expects pre-tax insurance losses due to Hurricane Milton in October to be between $1.3 billion and $1.5 billion, with related losses reflected in the fourth-quarter performance report.

As of September 30, 2024, 70% of Berkshire Hathaway's equity holdings were concentrated in five companies. Its stake in Apple (AAPL.US) decreased from $84.2 billion in the second quarter to $69.9 billion, indicating a 25% reduction in shares; its stake in Bank of America (BAC.US) fell from $41.1 billion to $31.7 billion. This year, Berkshire has repeatedly reduced its holdings in Bank of America, and as of October 10, Berkshire held 775 million shares of Bank of America, valued at approximately $31 billion at the close of that day.

Berkshire's holdings in American Express (AXP.US) increased from $35.1 billion in the second quarter to $41.1 billion; in Coca-Cola (KO.US) from $25.5 billion to $28.7 billion; and in Chevron (CVX.US) from $18.6 billion to $17.5 billion.

As of the end of the third quarter of 2024, the fair value of fixed-income securities investments held reached $16.042 billion, with fair values for investments in U.S. Treasury bonds, foreign bonds, and corporate bonds at $4.516 billion, $9.904 billion, and $1.394 billion, respectively