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.


50 countries warn UN of ransomware attacks on hospitals

50 countries warn UN of ransomware attacks on hospitals
Updated 3 sec ago
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50 countries warn UN of ransomware attacks on hospitals

50 countries warn UN of ransomware attacks on hospitals
  • The statement also condemned nations which “knowingly” allow those responsible for ransomware attacks to operate from
UN: The World Health Organization and some 50 countries issued a warning Friday at the United Nations about the rise of ransomware attacks against hospitals, with the United States specifically blaming Russia.
Ransomware is a type of digital blackmail in which hackers encrypt the data of victims — individuals, companies or institutions — and demand money as a “ransom” in order to restore it.
Such attacks on hospitals “can be issues of life and death,” according to WHO head Tedros Adhanom Ghebreyesus, who addressed the UN Security Council during a meeting Friday called by the United States.
“Surveys have shown that attacks on the health care sector have increased in both scale and frequency,” Ghebreyesus said, emphasizing the importance of international cooperation to combat them.
“Cybercrime, including ransomware, poses a serious threat to international security,” he added, calling on the Security Council to consider it as such.
A joint statement co-signed by over 50 countries — including South Korea, Ukraine, Japan, Argentina, France, Germany and the United Kingdom — offered a similar warning.
“These attacks pose direct threats to public safety and endanger human lives by delaying critical health care services, cause significant economic harm, and can pose a threat to international peace and security,” read the statement, shared by US Deputy National Security Adviser Anne Neuberger.
The statement also condemned nations which “knowingly” allow those responsible for ransomware attacks to operate from.
At the meeting, Neuberger directly called out Moscow, saying: “Some states — most notably Russia — continue to allow ransomware actors to operate from their territory with impunity.”
France and South Korea also pointed the finger at North Korea.
Russia defended itself by claiming the Security Council was not the appropriate forum to address cybercrime.
“We believe that today’s meeting can hardly be deemed a reasonable use of the Council’s time and resources,” said Russian ambassador Vassili Nebenzia.
“If our Western colleagues wish to discuss the security of health care facilities,” he continued, “they should agree in the Security Council upon specific steps to stop the horrific... attacks by Israel on hospitals in the Gaza Strip.”

China summons Philippine ambassador over new maritime laws

China summons Philippine ambassador over new maritime laws
Updated 21 min 12 sec ago
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China summons Philippine ambassador over new maritime laws

China summons Philippine ambassador over new maritime laws
  • Laws aimed at reinforcing Philippine rights to territory, resources
  • China unlikely to recognize laws, senator says

BEIJING/MANILA: China summoned the Philippines’ ambassador on Friday to express its objection to two new laws in the Southeast Asian nation asserting maritime rights and sovereignty over disputed areas of the South China Sea, its foreign ministry said.
China made “solemn representations” to the ambassador shortly after Philippine President Ferdinand Marcos Jr. signed the Maritime Zones Act and the Archipelagic Sea Lanes Act into law to strengthen his country’s maritime claims and bolster its territorial integrity.
The Maritime Zones law “illegally includes most of China’s Huangyan Island and Nansha Islands and related maritime areas in the Philippines’ maritime zones,” Beijing’s foreign ministry spokesperson Mao Ning said, using the Chinese names for Scarborough Shoal and the Spratly Islands respectively.
Beijing has rejected a 2016 ruling by The Hague-based Permanent Court of Arbitration which said its expansive maritime claims over the South China Sea had no legal basis, in a case that was brought by Manila. The United States, a Philippine ally, backs the court’s ruling.
Marcos said the two laws he signed, which define maritime entitlements and set designated sea lanes and air routes, were a demonstration of commitment to uphold the international rules-based order, and protect Manila’s rights to exploit resources peacefully in its exclusive economic zone (EEZ).
“Our people, especially our fisher folk, should be able to pursue their livelihood free from uncertainty and harassment,” Marcos said. “We must be able to harness mineral and energy resources in our sea bed.”
But Beijing said the laws were a “serious infringement” of its claims over the contested areas.
“China urges the Philippine side to effectively respect China’s territorial sovereignty and maritime rights and interests, to immediately stop taking any unilateral actions that may lead to the widening of the dispute and complicate the situation,” Mao said.
China, which also has sovereignty disputes with the other countries in the region, has enacted domestic laws covering the South China Sea, such as a coast guard law in 2021 that allows it to detain foreigners suspected of trespassing.
Beijing, which uses an armada of coast guard ships to assert its claims, routinely accuses vessels of trespassing in areas of the South China Sea that fall inside the EEZs of its neighbors, and has clashed repeatedly with the Philippines in the past year.
Philippine officials acknowledged the challenges they face in implementing the new laws, with one author, Senator Francis Tolentino, saying he did not expect a reduction in tensions.
“China will not recognize these, but the imprimatur that we’ll be getting from the international community would strengthen our position,” Tolentino told a press conference.
The United States on Friday backed the Philippines.
“The passage of the Maritime Zones Act by the Philippines is a routine matter and further clarifies Philippine maritime law,” State Department spokesperson Matthew Miller said in a statement.


Chad accuses Sudan of aiding rebel forces

Chad accuses Sudan of aiding rebel forces
Updated 20 min 2 sec ago
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Chad accuses Sudan of aiding rebel forces

Chad accuses Sudan of aiding rebel forces

LIBREVILLE: Chad on Friday accused Sudan of arming and financing rebel groups on Chadian territory with the aim of destabilising its neighbor.
Chad claims Sudan is aiding a rebellion by members of the Zaghawa ethnic group operating out of Sudan’s southwestern El Facher region.
“Sudan is financing and arming terrorist groups operating in the sub-region with the aim of destabilising Chad,” foreign affairs minister and government spokesman Abderaman Koulamallah said in a press release.
The Zaghawa rebels based in Sudan are led by Ousman Dillo, the younger brother of Chadian opposition leader Yaya Dillo Djerou, who was killed by Chadian military forces earlier this year.
In February 2008, a Zaghawa rebel group based in Sudan launched a lightning offensive in Chad along with other groups, forcing former president Idriss Deby Itno to take refuge in his presidential palace, before he was able to repel them with help from France.
In 2021, Idriss Deby Itno died fighting other rebel forces near the border with Libya and the army named his son Mahamat Idriss Deby as president.
Sudan’s government has accused Chad of meddling in its own civil war by helping to deliver weapons from the United Arab Emirates to the Rapid Support Forces (RSF) paramilitary forces, which Chad and the UAE have denied.
The Sudanese war, which pits the army against the RSF, broke out in April 2023 and has killed tens of thousands of people and displaced more than 11 million, including 3.1 million who are now sheltering beyond the country’s borders, monitors say.


Elon Musk joined Trump’s call with Ukraine’s Zelensky, media reports say

Elon Musk joined Trump’s call with Ukraine’s Zelensky, media reports say
Updated 09 November 2024
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Elon Musk joined Trump’s call with Ukraine’s Zelensky, media reports say

Elon Musk joined Trump’s call with Ukraine’s Zelensky, media reports say
  • Ukraine's President Zelensky called Trump on Wednesday to congratulate him on his election win, Axios reported
  • Trump reportedly said he would support Ukraine, without providing details, and Musk reportedly said he would continue supplying Starlink satellites

WASHINGTON: When Ukrainian President Volodymyr Zelensky called Donald Trump to congratulate him on his presidential election victory, Tesla CEO and Trump supporter Elon Musk joined the call, according to media reports on Friday. During the 25-minute call on Wednesday, the day after the election, Trump told Zelensky he would support Ukraine, without providing details, and Musk said he would continue supplying Starlink satellites, Axios reported, citing unidentified sources.
Musk owns SpaceX, which provides Starlink satellite communication services that are vital for Ukraine’s defense effort, but his statements have sometimes angered Kyiv since Russia invaded its neighbor in 2022.
Zelensky was telling Trump how important the satellites had been for Internet service during the war when Trump said Musk was with him and put the billionaire on the line, the Washington Post reported.
Trump and Musk were at Mar-a-Lago, Trump’s Palm Beach residence and club, when the call took place, according to the New York Times.
Musk gave millions of dollars to support Trump’s presidential campaign and made public appearances with him. Trump has said he would offer Musk, the world’s richest person, a role in his administration promoting government efficiency.
Musk did not immediately respond to a request for comment. The Trump campaign said it did not comment on private meetings.
Zelensky was among the first leaders to congratulate Trump, who has been critical of US military and financial support for Ukraine in its war with Russia.
Zelensky said in a post on social media platform X on Wednesday that his conversations with Trump should continue.
“We agreed to maintain close dialogue and advance our cooperation. Strong and unwavering US leadership is vital for the world and for a just peace,” the Ukrainian president said.


UK’s Met Police refers itself to watchdog over Al-Fayed probes

More than 400 women and witnesses have come forward alleging sexual misconduct by the former Harrods owner Mohamed Al-Fayed. (AF
More than 400 women and witnesses have come forward alleging sexual misconduct by the former Harrods owner Mohamed Al-Fayed. (AF
Updated 08 November 2024
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UK’s Met Police refers itself to watchdog over Al-Fayed probes

More than 400 women and witnesses have come forward alleging sexual misconduct by the former Harrods owner Mohamed Al-Fayed. (AF
  • Two women have complained about the police's handling of investigations into alleged sexual abuse by the late Harrods owner Mohamed Al-Fayed

LONDON: The UK’s Metropolitan Police on Friday referred itself to the police watchdog following complaints from two women over its handling of investigations into alleged sexual abuse by late Harrods owner Mohamed Al-Fayed.
The complaints, referred to the Independent Office for Police Conduct (IOPC), involve investigations from 2008 and 2013.
They revolve around the quality of the police response and, in the case of the 2013 probe, how details came to be disclosed publicly.
“In recent weeks, two victims-survivors have come forward with concerns about how their allegations were handled when first reported, and it is only appropriate that the IOPC assess these complaints,” said Stephen Clayman, from the Met’s Specialist Crime team.
“Although we cannot change the past, we are resolute in our goal to offer every individual who contacts us the highest standard of service and support,” he added.
More than 400 women and witnesses have come forward in the past six weeks alleging sexual misconduct by Fayed, who died in August last year aged 94.
The allegations follow the airing of a BBC documentary in September that detailed multiple claims of rape and sexual assault by the former owner of the upmarket London department store.
The Justice for Harrods Survivors group said it had received 421 inquiries, mainly related to the store but also regarding Fulham football club, the Ritz Hotel in Paris and other Fayed entities.
The Met said Friday that it was “actively reviewing 21 allegations reported to the Metropolitan Police prior to Mohamed Al-Fayed’s passing... to determine if any additional investigative steps are available or there are things we could have done better.”