Warren Buffett-Led Berkshire Hathway's Ginormous $157B Cash Pile Is Nearing Levels Held By One Of Its Biggest Equity Bets
- 6 months ago
Warren Buffett‘s Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE: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.
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.