Berkshire trims purchases as cash runs dry

NEW YORK: Warren Buffett's Berkshire Hathaway Inc, the largest shareholder in Kraft Foods Inc and Coca-Cola Co, is scaling back stock purchases after the firm's cash holdings fell to their lowest in more than five years.

Berkshire is spending less as the firm comes closer to the $10 billion that Buffett says is the minimum he wants on hand to protect against calamity. The cash hoard, which had been at $47.1 billion in September 2007, fell below $20 billion in April after the company posted its worst loss in at least 20 years and Buffett directed funds to corporate debt and preferred stock.

"He's tapped out," said Jeff Matthews, author of "Pilgrimage to Warren Buffett's Omaha" and founder of hedge fund Ram Partners LP. "He had to sell some of his stocks to buy stuff last fall. That's why he's not been making big stock purchases."