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.


Russian forces take over village in eastern Ukraine, TASS says

Russian forces take over village in eastern Ukraine, TASS says
Updated 49 sec ago
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Russian forces take over village in eastern Ukraine, TASS says

Russian forces take over village in eastern Ukraine, TASS says

Russian forces have taken control of the village of Zhelanne Pershe in Ukraine’s eastern Donetsk region, the state-run TASS news agency cited the Russian defense ministry as saying on Saturday.


Uganda holds funeral for murdered Olympian Cheptegei

Uganda holds funeral for murdered Olympian Cheptegei
Updated 6 min 33 sec ago
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Uganda holds funeral for murdered Olympian Cheptegei

Uganda holds funeral for murdered Olympian Cheptegei

BUKWO: Ugandans on Saturday paid tributes to Olympian Rebecca Cheptegei, who died after her partner set her on fire in Kenya, ahead of her funeral in her family village.
The 33-year-old, who debuted this summer in the women’s marathon at the Paris Olympics, succumbed to severe burns last week after being attacked by Kenyan Dickson Ndiema Marangach.
The brutal assault shocked the East African region and prompted a global outpouring of tributes, with activists condemning another act of gender-based violence in Kenya.
On Saturday morning, residents, officials and relatives waited in the cold morning light to pay their respects in the village of Bukwo, some 380 kilometers (240 miles) northeast of Uganda’s capital Kampala.
“We are extremely saddened,” said her estranged husband Simon Ayeko, with whom she had two daughters.
“As a father it has been very difficult,” he told AFP, explaining he had not been able to break the news to their children.
“Slowly we will tell them the truth.”
The service to honor Cheptegei, a sergeant in the Uganda Peoples’ Defense Forces, started around 10:00 am (0700 GMT), with officials and relatives gathering at the local council office.
The athlete was a “heroine” Bessie Modest Ajilong, the local presidential representative, told AFP.
Cheptegei’s body would move from local council headquarters, organizers said, to a nearby sports stadium so that the public could pay their respects. She will then be formally laid to rest at around 3:00 p.m. (1200 GMT).
Scores of athletes have traveled to the small village to attend the ceremonies.
“She greatly contributed to the promotion of athletics until her last days,” coach Alex Malinga, who trained her as a teenager, told AFP.
Local media say Cheptegei’s daughters witnessed the attack. Police said Marangach snuck into her home while she was at church with her children.
Her family say the couple had argued over ownership of the property where she lived with her sister Dorcas Cherop and daughters.
Her attacker later died from injuries sustained in the assault.
“I think at that time, their relationship had become sour,” Cheptegei’s brother-in-law, Moses Kipsiro, told AFP.
“I didn’t know then something was wrong,” said Kipsiro, who previously trained with Cheptegei and also hails from Bukwo.
The vicious assault has thrown yet another spotlight on what activists have called a femicide epidemic.
Kenya reported 725 femicide cases in 2022 alone, according to the latest UN figures.
A report the following year by Kenya’s National Bureau of Statistics found 34 percent of women had experienced physical violence since the age of 15.
At least two other athletes, Agnes Tirop and Damaris Mutua, have lost their lives in domestic violence incidents since 2021.


Comoros president ‘slightly injured’ in a knife attack, his office says

Comoros president ‘slightly injured’ in a knife attack, his office says
Updated 39 min 46 sec ago
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Comoros president ‘slightly injured’ in a knife attack, his office says

Comoros president ‘slightly injured’ in a knife attack, his office says
  • President Azali Assoumani’s injuries were not serious and he had returned to his home
  • Assoumani was reelected as president of Comoros in January in a vote denounced by opposition parties as fraudulent

MORONI, Comoros: The president of the Indian Ocean island nation of Comoros was “slightly injured” in a knife attack while attending the funeral of a religious leader on Friday, his office said.
President Azali Assoumani’s injuries were not serious and he had returned to his home, his office said in a statement. It said the attacker was arrested by security forces and is in their custody, but gave no details on the attacker’s identity or any more information on the circumstances of the attack.
Government minister Aboubacar Said Anli said Saturday that a civilian was also injured during the attack while attempting to protect the president.
Assoumani was reelected as president of Comoros in January in a vote denounced by opposition parties as fraudulent. At least one person died in unrest following the election. Assoumani, 65, is a former military leader who first came to power in Comoros in a coup in 1999.
The country, which is made up of an archipelago of islands off the east coast of Africa, has experienced more than a dozen coups or attempted coups since its independence from France in 1975.


WHO clears Bavarian Nordic’s vaccine for mpox, sets up access scheme

WHO clears Bavarian Nordic’s vaccine for mpox, sets up access scheme
Updated 14 September 2024
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WHO clears Bavarian Nordic’s vaccine for mpox, sets up access scheme

WHO clears Bavarian Nordic’s vaccine for mpox, sets up access scheme
  • WHO has faced criticism for moving too slowly on mpox vaccines
  • Bavarian Nordic’s vaccine has been used worldwide since 2022

LONDON: The World Health Organization and partners on Friday set up a scheme to help bring mpox vaccines, tests and treatments to the most vulnerable people in the world’s poorest countries, similar to efforts during the COVID-19 pandemic, after earlier approving the first shot for the fast-spreading disease.
Both steps should make it easier for badly-hit African countries to access the vaccine, as a new type of the mpox virus spreads from the Democratic Republic of Congo to its neighbors. The WHO has declared the outbreak a global public health emergency.
“Alongside other public health interventions, vaccines, therapeutics and diagnostics are powerful tools for bringing the mpox outbreaks in Africa under control,” said WHO Director-General Tedros Adhanom Ghebreyesus.
He said COVID-19 had shown the need for international collaboration to make access fairer. During the pandemic, many low-income countries were left behind in the global scramble for medical resources, particularly vaccines.
European countries, the United States and Japan have already pledged to donate 3.6 million doses of the two main vaccines used against mpox, the WHO said on Friday. Vaccinations are due to start from Oct. 2 with the first tranches of donations.
The WHO urged more countries to donate shots that were originally developed and stockpiled by rich nations for smallpox, and said it would work with affected countries to get them to the people at highest risk.
Earlier on Friday, the WHO said it had approved Bavarian Nordic’s vaccine, known as Jynneos in the United States. It is also considering LC16, made by the Japanese manufacturer KM Biologics.
The approval, known as prequalification, means UN agencies can now buy the vaccines as well as help co-ordinate donations. Gavi, the Vaccine Alliance, co-funds vaccine purchases for low-income countries in this way and has up to $500 million to spend on mpox.
DELAYS
The WHO has faced criticism for moving too slowly on mpox vaccines.
Bavarian Nordic’s vaccine has been used worldwide since 2022, after US and European regulators backed it for use against a different strain of mpox that spread globally in 2022.
The WHO only formally began the process in August this year. Other factors, including the roughly $100 price tag for the vaccine, competing disease outbreaks, and sluggish processes in badly-hit countries like Congo have also played a role.
“The evidence we have now is... it is important we take advantage of it (the vaccine) to protect our population,” Dimie Ogoina, chair of the WHO’s mpox emergency committee, had said before the approval.
He however stressed that vaccines were not a “magic bullet” and other public health measures were also important.
‘OFF-LABEL’ USE IN CHILDREN
Bavarian Nordic said the vaccine was cleared for immunization against smallpox, mpox, and related orthopoxvirus in those who are 18 and older, but it could be used “off-label” for children and pregnant and immunocompromised people in outbreak conditions, where the benefits of vaccination outweigh the risks. LC16 can already be given to children, according to the Japanese regulator, although it requires a special kind of needle.
Children are particularly vulnerable to mpox, a viral infection that typically causes flu-like symptoms and pus-filled skin lesions, as well as people with immune system conditions, such as HIV.


Stoltenberg says NATO could have done more to prevent Ukraine war, FAS reports

Stoltenberg says NATO could have done more to prevent Ukraine war, FAS reports
Updated 14 September 2024
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Stoltenberg says NATO could have done more to prevent Ukraine war, FAS reports

Stoltenberg says NATO could have done more to prevent Ukraine war, FAS reports
  • Kyiv, which is not a member of NATO, received one weapons system after another from its allies after initial hesitation

BERLIN: NATO could have done more to arm Ukraine to try to prevent Russia’s invasion in 2022, the outgoing head of the Western military alliance said in an interview released on Saturday.
“Now we provide military stuff to a war — then we could have provided military stuff to prevent the war,” NATO Secretary General Jens Stoltenberg told German weekly newspaper FAS.
Stoltenberg pointed to the North Atlantic Treaty Organization’s reluctance to provide weapons that Kyiv had asked for before Russia’s full-scale invasion because of fears that tensions with Russia would escalate.
After the war began, Kyiv, which is not a member of NATO, received one weapons system after another from its allies after initial hesitation.
Stoltenberg, a former prime minister of Norway, will step down in October from his role at NATO, which he has held since 2014. Dutch former Prime Minister Mark Rutte was announced in June as the organization’s next boss.
In the interview, Stoltenberg said an end to the war in Ukraine would be achieved only at the negotiating table.
“To end this war there will have to be again dialogue with Russia at a certain stage. But it has to be based on Ukrainian strength,” he said.
Stoltenberg declined to confirm that he would take over from German diplomat Christoph Heusgen as chair of the Munich Security Conference after leaving NATO. He told FAS he had “many options” and would reside in Oslo.