Berkshire Hathaway Hoards Rp6,900 Trillion in Cash, Breaking New Record
Berkshire Hathaway has recorded a surge in cash to an all-time high, alongside an increase in operating profit in the first quarter without Warren Buffett as CEO. This performance has drawn market attention amid the leadership transition to Greg Abel.
The company reported a cash and cash equivalents position of US$397.38 billion, or approximately Rp6,900 trillion, after reducing shareholdings during the period. Under Abel’s leadership, Berkshire sold equity securities worth US$24.09 billion and purchased US$15.94 billion.
According to Investopedia, several major stocks still dominate the portfolio, including Apple, American Express, Bank of America, Coca-Cola, and Chevron. This composition indicates a relatively consistent investment strategy despite the leadership change.
The company’s operating profit jumped nearly 18% to US$11.35 billion, primarily driven by the recovery of its insurance business. In the previous quarter, Berkshire had recorded a nearly 30% decline in operating profit due to decreases in the value of investments in Kraft Heinz and Occidental Petroleum.
Additionally, Berkshire has resumed its share buyback programme after nearly two years of hiatus. The company repurchased shares worth US$234.2 million, in line with its long-term strategy of buying shares when they trade below intrinsic value.
Abel is also reported to have personally purchased Berkshire shares as a signal of confidence in the company’s prospects. This move is seen as strengthening investor belief in the new direction under his leadership.
In the shareholder meeting, Abel reaffirmed his commitment to preserving the company’s old values while driving future growth. He stated that Berkshire has unique opportunities to expand in various business lines that form the core of American industry and consumer sectors.
Meanwhile, Buffett, who attended the event, gave full support to Abel. He stated that the company could not have made a better decision in choosing his successor as CEO.
Apple CEO Tim Cook, who also attended the meeting, received praise from Buffett for his performance. Buffett noted that Cook has successfully led Apple to rapid growth, despite not being widely known initially when he replaced the previous leadership.
However, investors hoping for a more detailed picture of Abel’s investment strategy will have to wait. Abel stated that he is still working closely with Buffett in managing Berkshire’s investment portfolio.