How much of berkshire hathaways current portfolio is in cash 11/3/2024
11/4/2024 08:27am
Berkshire Hathaway's Cash Position as of November 3, 2024
1. **Cash Holdings Increase**: Berkshire Hathaway's cash reserves reached a record $325.2 billion as of September-end 2024, up from $276.9 billion in the second quarter 2024.
2. **Percentage of Portfolio in Cash**: Given that the company's quarterly operating earnings fell by 6% to $10.09 billion, primarily due to insurance underwriting segment weakness, and considering the overall market conditions, it is evident that a significant portion of the portfolio has been shifted towards cash holdings.
3. **Market Cap Comparison**: Berkshire Hathaway's cash balance is now larger than the market cap of all but 27 public companies in the world, indicating a substantial investment in cash over its equity investments.
4. **Strategic Considerations**: This move is strategic, with Warren Buffett potentially de-risking the balance sheet and preparing for future opportunities, given the uncertain market conditions and potential future tax hikes.
In conclusion, a substantial portion of Berkshire Hathaway's current portfolio is in cash, with the company's cash reserves surpassing $325 billion, reflecting a deliberate shift towards liquidity amid market uncertainties.