Berkshire Hathaway's third-quarter earnings report showed flat reported revenue of $63.4 billion, with year-to-date revenue increasing to $309.2 billion. Operating earnings, excluding investment gains/losses, increased 40.6% to $10.8 billion. Book value per share declined 2.5% to $363,413, and the company's cash balances reached a record $157.2 billion. CEO Warren Buffett has expressed difficulty in finding viable investment opportunities.
Wealthy investors and family offices are moving more of their money out of bank cash balances and into Treasurys, money markets and other short-term instruments, following the collapse of Silicon Valley Bank and potential cracks in the network of regional banks. With the rapid Federal Reserve hikes, Treasurys and money markets can now offer a 4% or 5% risk-free return — often double the yield on a savings or checking account. As a result, wealthy investors and family offices have been moving all but a small portion of their cash balances into higher yielding cash-like investments, which are typically not on the balance sheet of the banks.
