Berkshire Hathaway's Shifts: Portfolio Trims Amid New Ventures and Record Cash

As of last week, Berkshire Hathaway B (BRK.B) saw a decline of 0.57%, marking a drop of 1.21% for the week and a 7.56% increase year-to-date. The company's recent valuation stands at $1.051 trillion. On June 9, 2025, transactions for BRK.B totaled $1.964 billion, placing it 25th in terms of volume among U.S. stocks for the day, marking a modest increase of 0.74% from the previous day's trading volume, which registered at 3.9875 million.

On June 9, 2025, Berkshire Hathaway B shares closed at $493.33, marking a slight decrease of 0.04%. Over the past five trading sessions, the stock dipped by 1.89%, while its performance for June showed a 2.11% decline. Since the beginning of the year, the stock has risen by 8.84%, and it has experienced a 19.24% increase over the past 52 weeks.

New developments in Berkshire's portfolio include the acquisition of shares in Domino's Pizza and Pool Corp, both of which have shown underperformance relative to the broader market this year. Domino's shares have been pressured by the spending challenges faced by low-income consumers, whereas Pool Corp. has seen declines due to waning discretionary spending and reduced swimming pool demand.

Throughout the third quarter, Berkshire Hathaway significantly reduced its holdings in several major companies. The firm cut its Apple stake by 25%, while over the year, it has shed as much as two-thirds of its Apple position. Similarly, a 23% reduction was seen in its investment in Bank of America, trimming its stake to 10.4% by the end of the quarter. Additional reductions were made in Ulta Beauty, where Berkshire sold off 96.5% of its holdings, causing a nearly 4% post-market drop in Ulta's share price.

Notably, Berkshire's reduction in Sirius XM was reversed in October, as recent filings revealed additional purchases, bringing the total stake to over 108.72 million shares with an investment of approximately $86 million during mid-October. Sirius XM provides an array of entertainment through satellite radio, with significant resilience in the car-related segment.

Berkshire's latest financial report indicates a slight decrease in third-quarter revenue and operating profit, primarily attributed to underperformance in its insurance business. Operating profit contracted by 6.2% from the previous year, and the company's cash reserves have surged to a record $325.2 billion.

Market speculations suggest that Berkshire's moves in trimming positions in Apple and Bank of America might be driven by high valuations and a strategy to diversify its investment portfolio. The lack of stock buybacks in the third quarter and holdings in new, underperforming equities have fueled investor beliefs that Warren Buffett might view current stock valuations as too high.