Berkshire Hathaway’s Portfolio Changes
Berkshire Hathaway, led by Warren Buffett, is witnessing significant shifts in its investment strategy as Buffett prepares to step down as CEO at the end of the year. Notably, as of Q3, Berkshire has reduced its stake in Apple to over 238 million shares, representing 21.4% of its portfolio, and its investment in Bank of America to just over 568 million shares, now accounting for 9.6%. Interestingly, Berkshire purchased shares of Alphabet for the first time, acquiring approximately 17.8 million shares as Alphabet achieved a record $102.3 billion in revenue during the same quarter.
Key Financial Metrics
In terms of financial impact, Apple is currently trading at 33.6 times its projected earnings, while Bank of America has seen substantial gains since Berkshire’s initial investment in 2011. Additionally, Berkshire now holds over $320 billion in U.S. Treasury bills, reflecting a strategic pivot towards securing profits from its previous investments.
Alphabet’s Performance
Alphabet’s impressive financial performance, combined with a robust balance sheet of nearly $98.5 billion in cash and marketable securities, likely influenced Berkshire’s recent investment. The company’s strong cash flow of nearly $24.5 billion also positions it favorably for future growth and returns.
