Article:
The investment powerhouse led by Warren Buffett has once again signalled a cautious stance on equity markets. In its latest quarter, Berkshire Hathaway off-loaded around $6 billion in stock holdings, extending its streak of net equity sales to the 12th consecutive quarter.
At the end of the quarter, the company’s cash and equivalents soared to a new record of $381.7 billion, underscoring a conservative approach in a market many observers consider richly valued.
From an operational perspective, Berkshire’s Q3 results showed an operating profit of roughly $13.49 billion, up about 34% year-on-year, and net income of around $30.8 billion, a rise of approximately 17%.
These moves reflect a broader message: despite underlying business strength, the firm appears reluctant to deploy capital at current valuations. Analysts suggest the decision to continue trimming positions while forgoing share buy-backs (for a fifth straight quarter) may indicate a view that stocks are overpriced or that better opportunities lie ahead.
With Buffett preparing to step down as CEO at year-end (while remaining chairman), the strategy also sets the stage for his successor to determine how the massive cash hoard will be utilised — whether via acquisitions, share repurchases or dividend initiation.
In sum, Berkshire’s latest financial move sends a subtle but clear signal to the market: even a firm renowned for opportunistic investing is choosing to wait — pointing to possible turbulence or limited upside in the near term.
Leave A Comment