### Berkshire Hathaway Reports Dip in Q3 Profit Amid Record Cash Pile Expansion

Berkshire Hathaway, helmed by the renowned investor Warren Buffett, announced a decline in its third-quarter profit while its cash reserves soared to an unprecedented $320 billion. This significant increase was coupled with reductions in Berkshire’s stakes in tech giant Apple and banking leader Bank of America.

For the third quarter, Berkshire's operating earnings fell to $10.1 billion, compared to $10.7 billion from the previous year and $11.6 billion in the previous quarter. Despite the dip in profit, the conglomerate's cash reserves ballooned from $271.5 billion in the second quarter to a staggering $320.3 billion, predominantly invested in short-term Treasury bills.

Buffett's strategy to trim significant holdings in Apple and Bank of America resulted in noteworthy adjustments to Berkshire's equity portfolio, which saw a decrease in value from $284.9 billion to $271.7 billion. So far this year, the firm has sold roughly $133 billion worth of stock, a sharp increase compared to the $33 billion in stock sales recorded in the first nine months of 2023. Apple's share value increased by more than 10% in the third quarter, yet Berkshire’s stake dropped from $84.2 billion to $69.9 billion, indicating a sale of about a quarter of its position. Previously, Buffett had significantly reduced Berkshire’s Apple holdings, selling off nearly half of its shares by mid-2023.

The transition was similarly notable with Bank of America. After beginning the offloading process in mid-July, the value of Berkshire’s stake in the bank fell from $41.1 billion at the end of June to $31.7 billion by the quarter's end.

On the insurance front, Berkshire experienced mixed results. Investment income surged by 50% to nearly $3.7 billion. However, these gains were offset by a 70% drop in insurance underwriting profit, which fell to $750 million. Hurricane Helene's impact was particularly severe, erasing $565 million in operating profit. Upcoming fourth-quarter results are expected to reflect additional losses from Hurricane Milton, estimated between $1.3 billion and $1.5 billion.

In other sectors, Berkshire Hathaway Energy saw profits triple to $1.6 billion, driven by enhanced earnings from natural gas pipelines and decreased litigation costs. The company's railroad division also reported a 13% increase in earnings, buoyed by higher volumes and lower operating expenses.

In summary, while Berkshire Hathaway’s profit took a hit in the third quarter, the company’s robust cash reserves and strategic sales of major equity holdings underscore its adaptive maneuvers in a fluctuating market and its readiness to seize future investment opportunities.