Nov 2 (Reuters) - Warren Buffett and Berkshire Hathaway ( BRK/A )

extended their retreat from stocks in the third

quarter, slashing their holdings in Apple ( AAPL ) and boosting

cash to a record $325.2 billion.

Berkshire also reported a 6% decline in quarterly operating

profit, largely the result of higher insurance underwriting

liabilities including for Hurricane Helene, and currency losses

from a strengthening U.S. dollar.

These offset improved profitability at the Geico car

insurer, where accident claims and expenses fell. Profit also

rose at the BNSF railroad, which shipped more consumer goods,

and Berkshire Hathaway Energy, where operating expenses

declined.

In its quarterly report on Saturday, Berkshire said it sold

about 100 million, or 25%, of its Apple ( AAPL ) shares over the summer,

ending with about 300 million.

It has now sold more than 600 million of the iPhone maker's

shares in 2024, though Apple ( AAPL ) remained Berkshire's largest stock

holding, at $69.9 billion.

The sales comprised a large portion of the $36.1 billion of

stock, including several billion dollars of Bank of America ( BAC )

shares, that Berkshire sold in the quarter.

Buffett said in May that he expected Apple ( AAPL ) to remain

Berkshire's largest stock investment, but selling made sense

because the 21% federal tax rate on the gains would likely grow.

Berkshire bought just $1.5 billion of stock in the quarter,

the eighth straight where it was a net seller of stocks.

It also repurchased none of its own stock, suggesting that

Buffett doesn't view even his own company's shares as a bargain.

HELENE, MILTON

Operating profit from Berkshire's dozens of businesses fell

to $10.09 billion, or about $7,019 per Class A share, from

$10.76 billion a year earlier.

Insurance underwriting profit fell 69%, dented by rising

claims, $565 million of losses from Helene, and a bankruptcy

court settlement related to defunct talc supplier Whittaker

Clark & Daniels.

This more than offset a near doubling of underwriting profit

at Geico.

Berkshire also projected $1.3 billion to $1.5 billion of

pre-tax losses in the fourth quarter from Hurricane Milton,

which slammed into Florida in October.

Net income totaled $26.25 billion, or $18,272 per Class A

share, compared with a loss of $12.77 billion, or $8,824 per

share, a year earlier when falling stock prices reduced the

value of Berkshire's investments.

Buffett has said operating results better reflect

Berkshire's performance.

Accounting rules require Berkshire to report unrealized

investment gains and losses when it reports net income, adding

volatility that Buffett counsels investors to ignore.

Buffett, 94, has led Berkshire since 1965, and is expected

to eventually transfer leadership to Vice Chairman Greg Abel,

62.

The Omaha, Nebraska-based conglomerate's businesses also

include Berkshire Hathaway Energy, many industrial and

manufacturing companies, a big real estate brokerage, and retail

businesses such as Dairy Queen and Fruit of the Loom.