**Warren Buffett's Berkshire Hathaway Amasses Record Cash Pile, Cuts Major Stock Bets**

As the US presidential election looms, investors are grappling with how to navigate the market, but Warren Buffett may have already revealed his strategy. On Saturday, it was disclosed that Buffett's Berkshire Hathaway has piled up an unprecedented amount of cash, reduced stakes in major holdings, and ceased buybacks of its own shares last quarter.

During the third quarter, between July and September 30, Berkshire Hathaway's liquid investments, including cash and Treasury bills, soared to a record $325 billion. Even subtracting nearly $15 billion of payables for Treasury bill purchases, this figure stands at $310 billion. This dramatic increase is notable when compared to the less than $110 billion held in cash by the company just two years ago.

Buffett's team took significant action in the stock market, selling $36 billion in shares while only making $1.5 billion in purchases. This marked their eighth consecutive quarter as net sellers, with a net $127 billion of stocks sold in the first nine months of 2024. This figure is more than triple the net $24 billion shed last year and a complete reversal from the net $34 billion of stock bought in 2022.

Among the divestments, Berkshire significantly reduced its investments in Apple and Bank of America, its two largest positions entering the quarter. Specifically, the conglomerate slashed its stake in Apple by 60% from January to September, cutting its value from around $174 billion to $70 billion. It also trimmed its holdings in Bank of America by about 23% between mid-July and early October, lowering its worth to below $32 billion.

Buffett's decision not to repurchase any Berkshire shares last quarter, after buying back $20 billion between the start of 2022 and June 30, signals his belief that the company’s stock, which has surged more than 20% this year to record highs, no longer represents a bargain.

The actions suggest Buffett has significant reservations about current stock valuations and economic conditions, as underscored by Russ Mould, AJ Bell's investment director. Mould highlighted that Buffett’s substantial cash reserves and stock sales indicate a cautious approach, potentially waiting for a more favorable market entry point.