Berkshire Hathaway cash sets record $382B as profit rises

Signaling caution ahead of Warren Buffett exit

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BERKSHIRE Hathaway signaled on Saturday that it remained cautious about markets, letting cash swell to a record $381.7 billion even as profit rose, in its last financial report before Warren Buffett bows out as chief executive.

For a 12^th straight quarter, Mr. Buffett's conglomerate sold more stocks than it bought for its $283.2-billion equity portfolio, whose holdings include Apple and American Express.

Berkshire also did not repurchase any of its own stock, the fifth straight quarter without buybacks, though its stock price has significantly lagged the broader market.

Lower insurance losses helped boost third-quarter operating profit 34% to $13.49 billion, topping analyst forecasts, while net income grew 17% to $30.8 billion.

But revenue grew just 2%, slower than the overall US economy's growth rate.

Economic uncertainty and waning consumer confidence have been drags, Berkshire said, stalling sales growth at the Clayton Homes homebuilder and reducing revenue from Duracell batteries, Fruit of the Loom apparel and Squishmallows toymaker Jazwares.

"Berkshire, which is often considered a microcosm of the US economy, isn’t even keeping up," said Cathy Seifert, a CFRA Research analyst with a “hold” rating on Berkshire. “Investors will struggle to find a catalyst for this stock.”

Mr. Buffett, 95, is letting cash build up as he prepares to end his six-decade tenure as chief executive at the end of the year.