Warren Buffett, the renowned investor, appears to have shifted his strategy, allowing cash at Berkshire Hathaway to soar to almost $277 billion while selling approximately half of its Apple stake. This move comes as Berkshire Hathaway posted a record quarterly operating profit.
The results were disclosed following a stock market downturn that pushed the Nasdaq into correction territory. Additionally, a weak jobs report has sparked worries about U.S. economic activity and the Federal Reserve's timing on interest rate cuts. Analyst Cathy Seifert of CFRA Research noted that Berkshire's recent actions indicate a defensive stance amidst broader economic uncertainties.
Berkshire's second-quarter profits rose 15% to $11.6 billion, with significant contributions from its insurance businesses. Despite the rising profits, revenue saw a modest increase, and net income fell by 15%. Buffett continues to seek investment opportunities but maintains a cautious approach, keeping substantial cash reserves ready for low-risk, high-reward scenarios.
(With inputs from agencies.)
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