Buffett Boosts Berkshire Cash to $277 Billion After Selling Apple Shares

Berkshire Hathaway has reported a record cash reserve of $276.9 billion for the last quarter, significantly surpassing its previous high of $189 billion set earlier this year. The Omaha-based conglomerate, led by Warren Buffett, has been actively selling off stock holdings, including substantial portions of its investment in Apple. In the second quarter alone, Buffett divested over $75 billion in equities, bringing the total for the first half of 2024 to more than $90 billion. Despite the aggressive selling strategy, Berkshire Hathaway's operating earnings rose to $11.6 billion in the second quarter, reflecting a 15% increase from $10 billion in the same period last year. Buffett, who is approaching his 94th birthday, expressed a cautious approach to deploying capital, citing high valuations as a deterrent. He emphasized the importance of investing in businesses with minimal risk and significant profit potential, stating, "We'd love to spend it, but we won't spend it unless we think [a business is] doing something that has very little risk." In contrast to its stock sales, Berkshire's stock buybacks have decreased, with only $345 million repurchased in the second quarter, a sharp decline from $2 billion in each of the previous two quarters. The broader market has seen the S&P 500 rise 12% in 2024, driven by optimism around the Federal Reserve's ability to manage inflation without triggering a recession. However, recent economic data, including a disappointing jobs report, has raised concerns about a potential slowdown, leading to a drop in the Dow Jones Industrial Average.