Despite the operating strength, Berkshire's cash and equivalents climbed to a record $381.7 billion at September 30, up from $344.1 billion at the end of June. The company repurchased no shares for the second consecutive quarter, and for the fifth straight quarter overall, even as the stock lagged the S&P 500 by a wide margin year to date. Buffett has long stated that buybacks occur only when shares trade below a conservative estimate of intrinsic value and liquidity remains ample.
Berkshire was a net seller of equities again, unloading $6.1 billion of stock during the quarter and realizing $10.4 billion in taxable gains. The sales likely included further trimming of its Apple and Bank of America positions, continuing a pattern that has seen the equity portfolio shrink over the past three years. At the same time, the company deployed $9.7 billion to acquire Occidental Petroleum's petrochemical unit, OxyChem, its largest deal in years.
Net investment income fell 13% to $3.2 billion, reflecting lower short-term interest rates on the massive Treasury bill portfolio. Cash and short-term Treasury holdings together totaled roughly $377.5 billion, with $72.2 billion in cash and equivalents and $305.4 billion in Treasury bills.