CNN
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Warren Buffett and Berkshire Hathaway continued their divestment from stocks in the third quarter, reducing their holdings in Apple and increasing their cash to a record $325.2 billion.

Berkshire also reported a 6% drop in quarterly operating profit, largely as a result of higher insurance underwriting liabilities, including Hurricane Helene, and foreign exchange losses from the strengthening U.S. dollar.

These boosted the profitability of Geico auto insurer, where accident claims and expenses fell. Profits also rose at BNSF railroad, which shipped more consumer goods, and at Berkshire Hathaway Energy, where operating expenses fell.

Berkshire said in its quarterly report on Saturday that it sold about 100 million, or 25%, of its Apple shares over the summer, ending up with about 300 million.

Although Apple owns Berkshire’s largest stake at $69.9 billion, it sold more than 600 million of the iPhone maker’s shares in 2024.

The sales accounted for a large portion of the $36.1 billion in stock Berkshire sold in the quarter, including several billion worth of Bank of America stock.

Buffett said in May that he expected Apple to stay. Berkshire’s largest stock investmentbut the sale made sense because the 21% federal tax rate on earnings would likely increase.

Berkshire bought just $1.5 billion worth of stock this quarter; this was the eighth consecutive period in which he was a net seller of stock.

He also hasn’t bought back any of his own shares, showing that Buffett doesn’t even view his own company’s shares as a bargain.

Operating profits from dozens of Berkshire businesses fell to $10.09 billion, or about $7,019 per Class A share, from $10.76 billion a year earlier.

Underwriting profits fell 69%, negatively impacted by rising claims, a $565 million loss from Helene and a bankruptcy court settlement related to defunct talc supplier Whittaker Clark & ​​Daniels.

This more than offset the nearly doubling of underwriting profits at Geico.

Berkshire also projected a pretax loss of $1.3 billion to $1.5 billion in the fourth quarter due to Hurricane Milton, which hit Florida in October.

Net income totaled $26.25 billion, or $18,272 per Class A share, compared with a loss of $12.77 billion, or $8,824 per share, a year ago, when falling stock prices reduced the value of Berkshire’s investments.

Buffett said operating results better reflect Berkshire’s performance.

Accounting rules require Berkshire to report unrealized investment gains and losses when reporting net income; This increases volatility, which Buffett advises investors to ignore.

Buffett, 94, has led Berkshire since 1965 and is expected to eventually hand the leadership over to Vice Chairman Greg Abel, 62.

The Omaha, Nebraska-based conglomerate’s businesses include Berkshire Hathaway Energy, several industrial and manufacturing companies, a major real estate brokerage, and retail businesses such as Dairy Queen and Fruit of the Loom.