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.


Vietnam says 'positive progress' in trade talks with US

Vietnam says 'positive progress' in trade talks with US
Updated 4 sec ago
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Vietnam says 'positive progress' in trade talks with US

Vietnam says 'positive progress' in trade talks with US
  • The Vietnamese team sought help during its time in the United States from US tech and industry giants, including Lockheed Martin, SpaceX and Google
  • Trump visited the Vietnamese capital in 2019 for his abortive second summit with North Korean leader Kim Jong Un
HANOI: Vietnam said on Thursday "positive progress" has been made in trade talks with Washington, as it tries to slash President Donald Trump's threatened 46 percent levy imposed on the country in his global tariff blitz.
The ministry of industry and trade however said both sides have "groups of issues for further discussion" in the coming rounds of talks, with the next scheduled for early June.
The southeast Asian nation has the third-biggest trade surplus with the United States of any country after China and Mexico and is anxious to address the imbalance to head off the tariff threat.
At the end of three days of talks in Washington, both sides had identified matters of common concern "in the spirit of goodwill, frankness... and balance of interests", the ministry said in a statement on its website.
The Vietnamese team sought help during its time in the United States from US tech and industry giants, including Lockheed Martin, SpaceX and Google.
It also signed an agreement with US company Westinghouse Electric on nuclear power development.
President Trump's real estate group on Wednesday broke ground in Vietnam on a $1.5-billion luxury resort and golf course 40 kilometres (25 miles) southeast of the capital Hanoi.
His son, Eric Trump, an executive vice president of The Trump Organization, and his wife Lara attended the event, as well as local partner the Kinhbac City Development Corporation (KBC).
He is also due to scout locations this week for a potential tower project in Ho Chi Minh City, Vietnam's southern business hub.
Trump visited the Vietnamese capital in 2019 for his abortive second summit with North Korean leader Kim Jong Un.
He described Hanoi at the time as an "incredible city", praising Vietnam for "the job they've done -- economic development".

Record floodwaters in eastern Australia leave 3 dead and 1 missing

Record floodwaters in eastern Australia leave 3 dead and 1 missing
Updated 18 min 58 sec ago
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Record floodwaters in eastern Australia leave 3 dead and 1 missing

Record floodwaters in eastern Australia leave 3 dead and 1 missing
  • More than 500 people were rescued in the flooding emergency in New South Wales state north of Sydney
  • Some New South Wales areas forecast to receive as much as 30 centimeters of rain in the next 24 hours

MELBOURNE: Record floodwaters on Australia’s east coast left three people dead and one missing, officials said Thursday, as more heavy rain was forecast in the area.
More than 500 people were rescued in the flooding emergency in New South Wales state north of Sydney. The area has been hit with heavy rain since Tuesday. The flooding exceeds local records set in 1921 and 1929.
New South Wales Premier Christopher Minns said some areas were forecast to receive as much as 30 centimeters (1 foot) of rain in the next 24 hours. He said 50,000 people were warned to prepare to evacuate or be isolated by floodwaters, telling reporters: “We are bracing for more bad news.”
The body of a 63-year-old man was recovered from a flooded house in Moto in New South Wales on Wednesday afternoon, Fire and Rescue Commissioner Jeremy Fewtrell said. A coroner will determine whether a pre-existing medical condition played a part in his death, he added.
The body of a man, aged in his 30s, was recovered from floodwaters near Rosewood early Thursday, a police statement said. He had disappeared while attempting to drive through a flooded intersection on Wednesday night.
A 60-year-old woman was found dead on Thursday after her SUV became trapped in floodwaters near Brooklana on Wednesday night. The SUV was found earlier on Thursday, police said.
A 49-year-old man also failed to return home after walking near a flooded road at Nymboida on Wednesday night, police said.
Minns said more than 500 people had been rescued from floodwater in just over two days, many after trying to drive across flooded roads.
Emergency Services Minister Jihad Dib said 330 flood rescues were conducted in the past 24 hours. Helicopters have been used to rescue people stranded by floodwaters from rooftops and verandahs.
“We’ve seen more rain and more flooding in the mid-to-north coast area than we’ve ever seen before,” Dib said.
The flooding has hit communities including Taree, Kempsey, Port Macquarie, Coffs Harbor and Bellingen in New South Wales.
Taree received a month’s rain in 24 hours, an official said.
“Up around the Taree area, we’ve seen communities that have never flooded in recorded history now flooding,” Fewtrell said.
The region has opened 14 evacuation centers as of Thursday.
Government meteorologist Angus Hines said a low-pressure weather system had stalled over the flooded region since Monday, bringing 60 centimeters (2 feet) of rain to some parts.
“If it had only been one day and then it had gone, we would have seen some minor or moderate flooding but it wouldn’t have been too bad. But four days in a row of this amount of rainfall and we see this significant and extensive, widespread and major flood event happening in front of our eyes,” Hines said.
The rain was losing intensity on Thursday, Hines said.


European leaders condemn killing of Israeli embassy staffers in Washington

European leaders condemn killing of Israeli embassy staffers in Washington
Updated 22 May 2025
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European leaders condemn killing of Israeli embassy staffers in Washington

European leaders condemn killing of Israeli embassy staffers in Washington
  • Two staff members of the Israeli embassy in Washington were fatally shot while leaving an event at a Jewish museum

European leaders issued strong condemnations Thursday following the fatal shooting of two Israeli embassy staffers outside a Jewish museum in Washington, denouncing the act as a barbaric expression of anti-Semitic violence.

German Foreign Minister Johann Wadephul said he was “shocked” by the incident, which occurred late Wednesday. “There is no justification for anti-Semitic violence,” he posted on X.

France’s Foreign Minister Jean-Noel Barrot called the attack “an abhorrent act of antisemitic barbarity.” He wrote on X: “The murder of two members of the Israeli embassy near the Jewish Museum in Washington is an abhorrent act of antisemitic barbarity. Nothing can justify such violence.”

Italian Foreign Minister Antonio Tajani “forcefully” condemned the shooting, describing it as having caused “scenes of terror and violence.” Posting on X, he warned that “anti-Semitism... must be stopped. The horrors of the past must not return.”

The European Union’s foreign policy chief, Kaja Kallas, also expressed shock, emphasizing that “there is and should be no place in our societies for hatred, extremism, or anti-Semitism.” She extended her condolences to the victims’ families and to the people of Israel.

 


Netanyahu says he has ordered enhanced security at Israel missions worldwide

Netanyahu says he has ordered enhanced security at Israel missions worldwide
Updated 10 min 28 sec ago
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Netanyahu says he has ordered enhanced security at Israel missions worldwide

Netanyahu says he has ordered enhanced security at Israel missions worldwide
  • The measure came after a gunman who shouted shot dead two embassy staffers outside a Jewish museum in Washington

JERUSALEM: Prime Minister Benjamin Netanyahu said Thursday he has ordered enhanced security measures at Israeli diplomatic missions worldwide after a gunman who shouted shot dead two embassy staffers outside a Jewish museum in Washington.
“I have instructed to enhance security arrangements at Israeli missions around the world and to increase protection for state representatives,” he said.
“We are witnessing the terrible price of anti-Semitism and the wild incitement against the State of Israel.”
Gunfire broke out late Wednesday outside the Capital Jewish Museum in the center of Washington as the venue held a social event for young professionals and diplomatic staff.
A video clip circulating on social media showed a young bearded man in a jacket and white shirt shouting “free, free Palestine” as he was led away by police.
The victims were a young couple who planned to get married, according to the Israeli ambassador to the United States, Yechiel Leiter.
Israeli President Isaac Herzog said he was “devastated” by the fatal attack but said the two countries would “stand united in defense of our people.”
“This is a despicable act of hatred, of anti-Semitism, which has claimed the lives of two young employees of the Israeli embassy,” Herzog said.
“America and Israel will stand united in defense of our people and our shared values. Terror and hate will not break us.”
Foreign Minister Gideon Saar too pledged that Israel would not give into “terror,” saying he was “horrified” by the attack.
“Israeli representatives around the world are constantly exposed to heightened risk — especially in these times,” he said.
“We are in close contact with American authorities. Israel will not surrender to terror.”


UK court puts last-minute block on a deal to hand Chagos islands to Mauritius

UK court puts last-minute block on a deal to hand Chagos islands to Mauritius
Updated 22 May 2025
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UK court puts last-minute block on a deal to hand Chagos islands to Mauritius

UK court puts last-minute block on a deal to hand Chagos islands to Mauritius
  • In 1965 Britain detached the Chagos Islands from Mauritius to create the British Indian Ocean Territory
  • The agreement was due to be signed Thursday morning at a virtual ceremony

LONDON: A British court blocked the UK from transferring sovereignty over the Chagos Islands, to Mauritius, hours before the agreement was due to be signed on Thursday.

The UK has agreed to hand sovereignty to Mauritius of the Indian Ocean archipelago, which is home to a strategically important naval and bomber base on the largest of the islands, Diego Garcia. The UK would then lease back the base for at least 99 years.

US President Donald Trump’s administration, which was consulted on the deal, gave its approval, but finalizing the agreement was delayed by last-minute negotiations over costs.

The agreement was due to be signed Thursday morning at a virtual ceremony.

But a High Court judge granted an injunction in the early hours of Thursday putting a hold on the agreement. It came in response to a claim by two of the original residents of the islands.

The Chagos islanders, many of whom relocated to Britain in the 1960s and 70s to make way for the Diego Garcia base, say they were not consulted over the agreement

In 1965 Britain detached the Chagos Islands from Mauritius — a former colony that became independent three years later — to create the British Indian Ocean Territory.

Financial details of the deal have not been set out.

Media reports have put the cost to Britain at £9 billion.