On Saturday, Berkshire Hathaway (NYSE:BRK) (NYSE:BRK) registered a decline in third-quarter operating earnings, driven by weakness in the insurance underwriting segment.

The Omaha-based company’s quarterly operating earnings of $10.09 billion slumped over 6% from $10.761 billion in the year-ago quarter.

Approximately 70% of the aggregate fair value was concentrated in five companies, as of September-end 2024:

• American Express Company (NYSE:AXP)  – $41.1 billion
• Apple Inc. (NASDAQ:AAPL) – $69.9 billion
• Bank of America Corporation (NYSE:BAC) – $31.7 billion
• Coca-Cola Company (NYSE:KO) – $28.7 billion 
• Chevron Corporation (NYSE:CVX) – $17.5 billion

It seems Warren Buffett has vended another considerable slice of his Apple stake, continuing to reduce Berkshire Hathaway’s most significant equity investment for the fourth consecutive quarter.

Despite the ongoing selling spree, Berkshire did not buy back any company shares during the period.

Berkshire Hathaway’s cash reserves soared to a record $325.2 billion as of September-end, increasing from $276.9 billion in the second quarter, as Warren Buffett continued selling stocks, per a news report from CNBC.

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This suggests that Buffett sold roughly a quarter of his stake, leaving around 300 million shares in his holdings. Overall, CNBC reported that his stake has decreased by 67.2% compared to the end of the third quarter of last year.

He began reducing his stake in the iPhone manufacturer during the fourth quarter of 2023 and significantly increased his selling in the second quarter, when he unexpectedly sold nearly half of his investment, the report added.

Berkshire and its subsidiaries also invest in certain businesses using the equity method, with significant holdings in common stock of The Kraft Heinz Company (NASDAQ:KHC) and Occidental Petroleum Corporation (NYSE:OXY).

As of September 30, 2024, the firm owned 26.9% of Kraft Heinz’s outstanding shares and 28.2% of Occidental’s outstanding shares.

Q3 In Detail

The company reported third-quarter net earnings of $18,272 per average equivalent Class A share, compared with a $(8,824) loss per share in the year-ago period. 

The company registered net earnings of $12.18 per average equivalent Class B share, compared with $(5.88) per share year over year.

In the third quarter, insurance underwriting generated earnings of $750 million versus $2.42 billion year over year (down 69%).

Earnings from insurance investment income were $3.664 billion, higher than $2.470 billion a year ago.

Buffett, 94, is one of the best-known fundamental investors in the world. Known as the “Oracle of Omaha,” he has a real-time net worth of $142.2 billion per Forbes.

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