Warren Buffett-Led Berkshire Hathway's Ginormous $157B Cash Pile Is Nearing Levels Held By One Of Its Biggest Equity Bets

Warren Buffett‘s Berkshire Hathaway, Inc. BRK BRK reported a robust 41% year-over-year surge in third-quarter operating earnings, but a widened net loss due to increased investment and derivative trading losses. Nevertheless, the company’s cash reserves have reached a new all-time high.

What Happened: In addition to substantial growth in operating profit, Berkshire’s cash holdings soared to a record $157.241 billion at the close of the September quarter, up from $147.38 billion at the end of the June quarter. The prior record was set in the third quarter of 2021 when cash holdings were at $149.2 billion.

Specifically, short-term Treasury bill investments on the company’s balance sheet totaled $126.40 billion by the end of the September quarter, up from $97.32 billion as of June 30, 2023.

During the third quarter, bond yields surged amid expectations that the Federal Reserve would prolong its rate-hike campaign. The yield on the benchmark 10-year Treasury note exceeded 5% on Oct. 23 for the first time since July 19, 2007.

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Berkshire’s Biggest Bet: Berkshire’s leading portfolio investment is Apple, Inc. AAPL. Buffett’s company stated in its most recent 10-Q filing that nearly 78% of the aggregate fair value was concentrated in five companies. Out of the $318.62 billion equity investment in terms of fair value, Apple constituted $156.8 billion, accounting for 49%.

Aside from the fair value of the Apple investment, Berkshire receives dividend income from Apple. Following the September quarter results, the tech giant declared a cash dividend of 24 cents per share.

Incidentally, Berkshire’s cash position is nearing the value of its most significant equity bets. Apple’s cash holdings at the close of the September quarter amounted to $162.10 billion, comprising $29.97 billion in cash and cash equivalents, current marketable securities valued at $31.59 billion, and non-current marketable securities of $100.54 billion.

Apple traded up 0.23% at $177.05 in premarket trading on Monday, according to Benzinga Pro data.