Berkshire Hathaway’s (BRK.B) stock is down slightly on Nov. 3 after the company delivered its latest financial results, and amid worries that the company may have reduced its stake in Apple (AAPL).
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While the financial results for this year’s third quarter were predictably solid, investors remain uncertain about the direction of Berkshire Hathaway once Warren Buffett steps down as CEO at year’s end following 60 years at the company’s helm.
Some analysts also take issue with Berkshire’s cash pile, which continues to swell and reached a record $381.6 billion at the end of September this year. Analysts and investors are calling on Berkshire Hathaway to put more of its cash to work.
Berkshire announced in September that it is buying Occidental Petroleum’s (OXY) petrochemical unit, OxyChem, for $9.7 billion in cash, its biggest acquisition in three years. Still, the OxyChem deal barely dented the company’s cash hoard.
Apple Stake
There is also speculation that Buffett, or one of his lieutenants, may have trimmed Berkshire Hathaway’s massive stake in consumer electronics giant Apple (AAPL) during the third quarter. In its latest earnings report, Berkshire said the cost basis of its consumer products equity holdings fell by $1.2 billion from the year’s second quarter.
That category is dominated by the giant Apple position, which is currently Berkshire’s largest at 280 million shares valued at $75.18 billion based on the current price of AAPL stock. Apple comprises 24% of Berkshire’s equity portfolio and remains the holding company’s single largest investment.
It won’t be known if Buffett actually reduced the Apple stake until Berkshire Hathaway’s next 13F regulatory filing is released in mid-November.
Is BRK.B Stock a Buy?
Only a couple of analysts currently offer a rating and price target on Berkshire Hathaway’s more affordable Class B stock. So instead, we’ll look at the shares’ three-month performance. As one can see in the chart below, shares of BRK.B have risen 4.01% in the last 12 weeks.
