Warren Buffett sitting on a $325 billion cash mountain

Warren Buffett is sitting on a mountain of money. Literally. In fact, the liquidity of his conglomerate Berkshire Hathaway reached $325.2 billion in the third quarter, a record for the group, while the 'Oracle of Omaha' continues to refrain from major acquisitions, indeed reducing some of his most significant holdings.

In fact, the group disclosed that it had once again cut its stake in Apple: the stake in the iPhone manufacturer was valued at $69.9 billion at the end of the quarter, down from $84.2 billion in the second quarter, indicating that the company had reduced its stake by around 25 per cent.

Berkshire entered Apple in 2016, spending $31.1 billion for the 908 million Apple shares it held until the end of 2021. To date, it constitutes Berkshire's largest investment, but, as mentioned, it is being phased out.

On the other hand, the company is struggling to find ways to deploy its liquidity: aided by Wall Street's record highs in recent months, Buffett believes market prices are too high to find attractive bids. At the annual shareholders' meeting in May, the investor stated that Berkshire is in no hurry to spend 'unless we think we're doing something that has minimal risk and can make us a lot of money'.

Buffett, 94, has used some of the cash to buy back his own shares, although recently even this type of shareholder compensation initiative has become more expensive. Berkshire's shares have gained 25 per cent this year, boosting its market value to $974.3 billion. On 28 August, its capitalisation on Wall Street exceeded $1 trillion for the first time.