Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter

Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter
An attendee holds a cardboard cutout of Warren Buffett, chairman and CEO of Berkshire Hathaway Inc., inside the CHI Health Center during the Berkshire Hathaway annual shareholders meeting in Omaha, Nebraska, on May 4, 2024. (Bloomberg via Getty Images)
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Updated 04 August 2024
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Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter

Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter
  • He has trimmed the Apple stake over the past year and has recently also sold off some of his stock in Bank of America and Chinese EV maker BYD while doing very little buyin

OMAHA, Nebraska: Billionaire Warren Buffett slashed Berkshire Hathaway’s massive Apple stake in a move that could prove unsettling for the broader stock market — both because the investor is so revered and because there had been little positive financial news lately.
Just two years ago Buffett called the stock one of the four giants of his conglomerate’s business alongside Berkshire insurance, utility and BNSF railroad businesses that it owns outright. That gave investors the impression that Buffett might hold onto Apple indefinitely as he has with the Coca-Cola and American Express shares he bought decades ago.
However, he has trimmed the Apple stake over the past year and has recently also sold off some of his stock in Bank of America and Chinese EV maker BYD while doing very little buying.
As a result, Buffett is now sitting on nearly $277 billion in cash, up from what was already a record $189 billion just three months earlier.
“This could could alarm the markets especially given the news from last week” with weak tech earnings, a disappointing jobs report and uncertainty about the future of interest rates, Edward Jones analyst Jim Shanahan said.
Buffett has consistently lavished praise on Apple CEO Tim Cook, who attended Berkshire’s annual meeting in Omaha in May, and talked about the way consumers are feverishly devoted to their iPhones and don’t like to switch. He did trim more than 10 percent of Berkshire’s Apple stake in the first three months of this year when he sold off more than 116 million shares, but the sale disclosed Saturday was a much bigger move.
Wedbush tech analyst Dan Ives said in a research note that he thinks “Buffett is a core believer in Apple and we do not view this as a smoke signal for bad news ahead.” Apple remains the largest investment in Berkshire’s portfolio by far — more than double its Bank of America stake.
Ives said he thinks the recent tech sell-off is only a temporary distraction from the industry’s long-term boom.
Berkshire didn’t give an exact count of its Apple shares in Saturday’s report, but it estimated the investment was worth $84.2 billion at the end of the second quarter even though shares soared over the summer as high as $237.23. At the end of the first quarter, Berkshire’s Apple stake was worth $135.4 billion.
Shanahan estimates that Berkshire still holds about 400 million Apple shares.
Still, while CFRA Research analyst Cathy Seifert said she looks at the Apple sale more as responsible portfolio management because the tech giant had become such a large portion of Berkshire’s holdings, it does look like Buffett may be preparing for a downturn.
“This is a company girding itself for a weaker economic climate,” Seifert said.
Berkshire reported a small drop in its bottom-line earnings because of a drop in the paper value of its investments. The company said it earned $30.348 billion, or $21,122 per Class A share, during the second quarter. That’s down from $35.912 billion, or $24,775 per A share, a year ago.
Buffett has long cautioned investors that it’s better to look at Berkshire’s operating earnings when judging its performance because those figures exclude investment gains and losses which can vary widely from quarter to quarter.
By that measure, Berkshire’s operating earnings grew more than 15 percent to $11.598 billion, or $8,072.16 per Class A share, from $10.043 billion, or $6,928.40 per Class A share, a year ago. Geico led the improvement of Berkshire’s businesses while many of its other companies that are more sensitive to the economy reported lackluster results.
The results easily topped the $6,530.25 earnings per share that four analysts surveyed by FactSet Research predicted.
Berkshire owns an assortment of insurance businesses along with BNSF railroad, several major utilities and a varied collection of retail and manufacturing businesses, including brands like Dairy Queen and See’s Candy.


Britain’s crime minister has bag stolen at police conference

Britain’s crime minister has bag stolen at police conference
Updated 12 September 2024
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Britain’s crime minister has bag stolen at police conference

Britain’s crime minister has bag stolen at police conference
  • In her speech, Diana Johnson said Britain had been ‘gripped by an epidemic of anti-social behavior, theft and shoplifting’
  • Warwickshire Police said a 56-year-old man was arrested on suspicion of burglary and released on bail in connection to the incident

LONDON: Britain’s police and crime minister had her bag stolen at a conference for senior and midranking police officers where she spoke about the growing problem of theft and shoplifting, a government official said on Thursday.
The incident occurred when Diana Johnson attended the Police Superintendents’ Association conference in central England on Tuesday where one senior officer told her in a speech that the criminal justice system was broken.
The official said Johnson had her bag stolen at the conference, but no security risk had been identified. In her speech, Johnson said Britain had been “gripped by an epidemic of anti-social behavior, theft and shoplifting.”
The Home Office, or interior ministry, declined to comment.
Warwickshire Police said a 56-year-old man was arrested on suspicion of burglary and released on bail in connection to the incident.
Britain has been hit by an increase in thefts and shoplifting in recent years. While overall crime has generally been decreasing, the number of thefts from individuals of items like bags and mobile phones rose by 40 percent in the year ending March, according to the Office for National Statistics.
This has contributed to public support for the police falling to record lows. A poll by YouGov earlier this year found more than half of the public do not trust the police to solve crimes, and over a third said they have no faith in the police to maintain law and order.
In her speech, Johnson announced plans to give more police officers training to tackle anti-social behavior after a “decade of decline.”
“Too many town centers and high streets across the country have been gripped by an epidemic of anti-social behavior, theft and shoplifting which is corroding our communities and cannot be allowed to continue,” she said.


Russian missile hit an Egypt-bound wheat cargo ship in Black Sea: Zelensky

Russian missile hit an Egypt-bound wheat cargo ship in Black Sea: Zelensky
Updated 12 September 2024
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Russian missile hit an Egypt-bound wheat cargo ship in Black Sea: Zelensky

Russian missile hit an Egypt-bound wheat cargo ship in Black Sea: Zelensky
  • “Russia launched a strike on an ordinary civilian vessel in the Black Sea right after it left Ukrainian territorial waters,” Zelensky said
  • There were no casualties from the attack, Zelensky added, urging global condemnation after the strike

KYIV: A Russian missile on Thursday morning hit an Egypt-bound cargo ship in the Black Sea carrying wheat, Ukrainian President Volodymyr Zelensky said.
The Black Sea is a crucial trading route for Ukraine, one of the world’s largest agricultural producers and exporters, but was turned into a naval battleground when Russia invaded Ukraine.
“Russian missile against a wheat cargo bound for Egypt ... Russia launched a strike on an ordinary civilian vessel in the Black Sea right after it left Ukrainian territorial waters,” Zelensky said in a post on social media.
There were no casualties from the attack, Zelensky added, urging global condemnation after the strike.
“Domestic stability and normal life in dozens of countries around the world are dependent on the normal and unhindered operation of our food expert corridor,” he said.
Moscow last year pulled out of a UN-brokered deal guaranteeing safe passage for Ukraine’s agricultural exports on the Black Sea, but Kyiv has carved out a maritime corridor allowing trade to continue.
Over 5,000 ships have sailed through the grain corridor since it was created, Defense Minister Rustem Umerov said Wednesday.
Global food prices shot up when Russia invaded Ukraine amid fears conflict in the Black Sea would hobble global food supplies.


Sweden wants to pay immigrants up to $34,000 to return: govt

Sweden wants to pay immigrants up to $34,000 to return: govt
Updated 12 September 2024
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Sweden wants to pay immigrants up to $34,000 to return: govt

Sweden wants to pay immigrants up to $34,000 to return: govt
  • As of 2026, immigrants who voluntarily return to their home countries would be eligible to receive up to $34,000

STOCKHOLM: Sweden's government said Thursday it would drastically increase grants for immigrants who choose to leave the country, in order to encourage more migrants to make the choice.
As of 2026, immigrants who voluntarily return to their home countries would be eligible to receive up to 350,000 Swedish kronor ($34,000), up from the current 10,000 kronor, the right-wing government, which is propped up by the anti-immigration Sweden Democrats, said in a statement.


Polish FM sees limit on influencing Iran after Russia missiles transfer

Polish FM sees limit on influencing Iran after Russia missiles transfer
Updated 12 September 2024
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Polish FM sees limit on influencing Iran after Russia missiles transfer

Polish FM sees limit on influencing Iran after Russia missiles transfer
  • “The trouble for Poland is that Iran is already under such severe sanctions that there is not that much more that we can do,” Foreign Minister Radoslaw Sikorski said
  • “I’m disappointed, because we have a new president of Iran“

WARSAW: Poland’s foreign minister conceded Thursday that there were limits on how to influence Iran, already under heavy sanctions, after Tehran allegedly shipped short-range missiles to Russia to attack Ukraine.
Western powers this week imposed new sanctions targeting Iran’s aviation sector, including state carrier Iran Air, and Ukraine warned it may cut off relations with Tehran.
“The trouble for Poland is that Iran is already under such severe sanctions that there is not that much more that we can do,” Foreign Minister Radoslaw Sikorski said when asked if Poland, a staunch backer of Ukraine, would also sever ties.
He was speaking at a joint news conference with US Secretary of State Antony Blinken, who on Tuesday said that Russia could start firing the Iranian missiles into Ukraine within weeks.
Western powers had warned Iran against the move, and Sikorski noted that it came shortly after Iranians elected President Masoud Pezeshkian, seen as a reformist within the cleric-run state.
“I’m disappointed, because we have a new president of Iran. He’s supposedly not as aggressive as the previous butcher of Tehran,” Sikorski said.
“But the policy of sending missiles and drones to use against Ukraine and also using similar equipment against Israel seems to be continuing.”
Poland enjoys a long history with Iran, which took in thousands of Polish civilians during World War II.
But as a close US ally, it has joined pressure campaigns against Iran, including agreeing to host a 2019 conference encouraged by then president Donald Trump that pressured Tehran.


Russia hit Red Cross vehicles in east Ukraine, killed 3: Zelensky

Russia hit Red Cross vehicles in east Ukraine, killed 3: Zelensky
Updated 12 September 2024
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Russia hit Red Cross vehicles in east Ukraine, killed 3: Zelensky

Russia hit Red Cross vehicles in east Ukraine, killed 3: Zelensky
  • “Today, the occupier attacked the vehicles of the International Committee of the Red Cross humanitarian mission in Donetsk region,” Zelensky said
  • The attack took place in the village of Virolyubivka

KYIV: Ukrainian President Volodymyr Zelensky said a Russian attack on vehicles of the International Committee of the Red Cross (ICRC) Thursday in his country’s east had killed three people.
“Today, the occupier attacked the vehicles of the International Committee of the Red Cross humanitarian mission in Donetsk region,” Zelensky said.
Artillery shelling killed three Ukrainian citizens working for the ICRC and wounded another two, the Ukrainian parliamentary commissioner for human rights Dmytro Lubinets said.
The attack took place in the village of Virolyubivka, a dozen of kilometers away from the front line in Donetsk.
There was no immediate comment from Russia, which routinely says it only hits military targets.
The UN Humanitarian mission to Ukraine said 50 workers were killed or injured in Ukraine in 2023, including 11 killed in the line of duty.
“Since the beginning of the year, this repeated pattern of attacks appears to have intensified,” the UN humanitarian coordinator Denise Brown said in a statement in February.