Share repurchases on hold as cash reaches new high
Berkshire did not repurchase any of its own shares during the quarter, signaling that Buffett and vice chair Charlie Munger continue to view the stock as fairly valued. The absence of buybacks, coupled with net sales of publicly traded equities, lifted the company’s cash and short-term Treasury holdings to a record $381.7 billion at September 30, up 10.9% from the end of June. Excluding cash at BNSF Railway and adjusting for the settlement date of certain Treasury bills, Berkshire’s liquidity stood at $354.3 billion, 4.3% above the prior quarter.
Monday statement may outline succession and philanthropy plans
Berkshire said it will release a communication from Buffett on Monday, November 10, covering philanthropy, corporate matters and other topics “of interest” to shareholders. Buffett, 94, is expected to step down as chief executive at year-end, though he will remain board chairman. The forthcoming note is therefore widely seen as a potential farewell message in his capacity as CEO. Greg Abel, currently vice chair for non-insurance operations, is set to assume the top post and author next year’s annual shareholder letter; Buffett will not appear on stage at the 2025 shareholders’ meeting.
Regulatory filing hints at additional sales of Apple and Bank of America
Berkshire’s latest Form 10-Q shows a $1.2 billion decline in the cost basis of its consumer-product equity holdings during the third quarter, a category that includes Apple. Given Apple’s 24% increase during the period, analysts estimate Buffett’s team likely took further profits. Calculations published by Barron’s suggest roughly 35 million Apple shares may have been sold for about $8 billion. Even after multiple reductions, Apple remains Berkshire’s largest publicly traded position at an estimated $75.2 billion.
The filing also points to possible sales of Bank of America stock. Berkshire has reduced that stake by roughly 40% since early 2024, leaving a holding valued near $32.2 billion, its third-largest equity investment.
Imagem: Internet
Second yen-denominated bond of 2025 planned
Berkshire has mandated banks to arrange another yen bond issuance—the second this year—and has submitted a preliminary prospectus to the U.S. Securities and Exchange Commission. Proceeds are expected to support continued purchases of Japanese trading companies, a theme the conglomerate initiated in 2019. Market data show the combined market value of Berkshire’s stakes in Itochu, Mitsubishi, Mitsui, Marubeni and Sumitomo has climbed to roughly $33 billion, up from $31 billion a month ago. Itochu led weekly gains among the group with a 6.5% rise, and all five stocks trade near record highs.
Warning issued over deep-fake videos
Berkshire released a statement Thursday cautioning viewers about fraudulent online videos that use real or computer-generated images to impersonate Buffett. The company noted that the voice in such clips is easily identifiable as artificial and reiterated concerns expressed by Buffett at the 2024 annual meeting that advances in artificial intelligence could accelerate financial scams. Earlier this year, Berkshire issued a similar alert after unverified social-media posts claimed to quote the billionaire investor.
Exposure to wildfire litigation and data-center power disputes
Separately, Berkshire-owned utility PacifiCorp said in a regulatory filing that pending wildfire damage trials could pressure its liquidity. The unit also faces criticism from Amazon Web Services, which alleges PacifiCorp has failed to deliver promised electricity capacity to data centers in the Pacific Northwest.
For context on Berkshire’s regulatory filings and bond issuance strategy, background information can be found on the U.S. Securities and Exchange Commission website.
Crédito da imagem: CNBC
