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.
Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter
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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
Bondi Beach shooting suspect conducted firearms training with his father, Australian police say
MELBOURNE, Australia: A man accused of killing 15 people at Sydney’s Bondi Beach conducted firearms training in an area of New South Wales state outside of Sydney with his father, according to Australian police documents released on Monday.
The documents, made public following Naveed Akram’s video court appearance from a Sydney hospital where he has been treated for an abdominal injury, said the two men recorded footage justifying the meticulously planned attack.
Officers wounded Akram at the scene of the Dec. 14 shooting and killed his father, 50-year-old Sajid Akram.
The state government confirmed Naveed Akram was transferred Monday from a hospital to a prison. Authorities identified neither facility.
The 24-year-old and his father began their attack by throwing four improvised explosive devices toward a crowd celebrating an annual Jewish event at Bondi Beach, but the devices failed to explode, the documents said.
Police described the devices as three aluminum pipe bombs and a tennis ball bomb containing an explosive, gunpowder and steel ball bearings. None detonated, but police described them as “viable” IEDs.
The pair had rented a room in the Sydney suburb of Campsie for three weeks before they left at 2:16 a.m. on the day of the attack. CCTV recorded them carrying what police allege were two shotguns, a rifle, five IEDs and two homemade Daesh group flags wrapped in blankets.
Police also released images of the gunmen shooting from a footbridge, providing them with an elevated vantage point and the protection of waist-high concrete walls.
The largest IED was found after the gunbattle near the footbridge in the trunk of the son’s car, which had been left draped with the flags.
Authorities have charged Akram with 59 offenses, including 15 counts of murder, 40 counts of causing harm with intent to murder in relation to the wounded survivors and one count of committing a terrorist act.
The antisemitic attack at the start of the eight-day Hanukkah celebration was Australia’s worst mass shooting since a lone gunman killed 35 people in Tasmania state in 1996.
The New South Wales government introduced draft laws to Parliament on Monday that Premier Chris Minns said would become the toughest in Australia.
The new restrictions would include making Australian citizenship a condition of qualifying for a firearms license. That would have excluded Sajid Akram, who was an Indian citizen with a permanent resident visa.
Sajid Akram also legally owned six rifles and shotguns. A new legal limit for recreational shooters would be a maximum of four guns.
Police said a video found on Naveed Akram’s phone shows him with his father expressing “their political and religious views and appear to summarise their justification for the Bondi terrorist attack.”
The men are seen in the video “condemning the acts of Zionists” while they also “adhere to a religiously motivated ideology linked to Islamic State,” police said, using another term for the Daesh Group.
Video shot in October shows them “firing shotguns and moving in a tactical manner” on grassland surrounded by trees, police said.
“There is evidence that the Accused and his father meticulously planned this terrorist attack for many months,” police allege.
An impromptu memorial that grew near the Bondi Pavilion after the massacre, as thousands of mourners brought flowers and heartfelt cards, was removed Monday as the beachfront returned to more normal activity. The Sydney Jewish Museum will preserve part of the memorial.
Victims’ funerals continued Monday with French national Dan Elkayam’s service held in the nearby suburb of Woollahra, at the heart of Sydney’s Jewish life. The 27-year-old moved from Paris to Sydney a year ago.
The health department said 12 people wounded in the attack remained in hospitals on Monday.
