Berkshire Hathaway, headquartered in Omaha, experienced a decrease in its significant cash reserves for the first time in over three years, despite soaring profits.
The conglomerate reported a net income of $25.67 billion for the second quarter, more than double the previous year’s total of $12.37 billion, as per a report by The Wall Street Journal.
Operating earnings, excluding investment gains, rose by 16.3% to $12.98 billion from $11.16 billion.
As of the end of June, Berkshire Hathaway held $364.7 billion in cash and Treasury bills, showing a 4% decrease from the previous quarter after factoring in amounts owed on some short-term government securities.
This decline marked the first drop in Berkshire’s cash holdings on a quarter-on-quarter basis in four years.
In the second quarter, the decrease in cash was driven by Berkshire’s completion of the $6.8 billion acquisition of homebuilder Taylor Morrison (TMHC) on July 24th at $72.50 per share.
The company also acquired $10 billion worth of Alphabet (GOOG/GOOGL) shares as part of $23.5 billion in total equity purchases while selling $3.7 billion.
Additionally, stock repurchases of the company’s Class A and Class B shares amounted to approximately $4.5 billion during the period.
Berkshire’s top holdings now include Alphabet, American Express (AXP), Apple (AAPL), Bank of America (BAC), and Coca-Cola (KO).
The value of its Class A shares closed at $780,086 recently, with a 3.4% year-to-date increase but still 3.6% below its all-time high of $809,350 reached in early May 2025, just before Warren Buffett’s retirement announcement.
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