Has the Time Come... Buffett's Berkshire Halts Cash Hoarding After 3 Years

According to the earnings report released on the 4th, Berkshire's cash reserves at the end of the second quarter were $344 billion (approximately 478 trillion won), down 1% from the previous quarter. This is the first time the cash reserves, which have been steadily increasing since 2022, have decreased.

The company doubled its cash reserves last year, anticipating potential stock market adjustments, but has stopped accumulating cash this year. Additionally, in the second quarter, it disposed of approximately $3 billion worth of stocks, and no share buybacks were conducted.

Berkshire has focused on shareholder returns through share repurchases instead of dividends.

Meanwhile, the value of the food subsidiary Kraft Heinz was significantly adjusted. Berkshire reflected a $3.8 billion reduction in the book value of its stake. Kraft Heinz, which has been experiencing continued poor performance, is currently considering separating some of its businesses.

The operating profit for the second quarter was $11.16 billion, down 4% from the previous year. This was influenced by the main insurance subsidiary Geico increasing its marketing expenses to expand its market share.

At the end of the report, Berkshire mentioned the tariff policies introduced during former President Donald Trump's administration, stating that trade-related conflicts intensified in the first half of 2025, and there could be significant uncertainties in future performance.