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
https://arab.news/85ydm
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
Romanian leftist PM and hard-right candidate in a tie after initial presidential election round, partial results show
- Romania’s staunchly pro-Ukraine stance at risk
- Hard-right Georgescu has questioned NATO commitment to collective defense
BUCHAREST: A Romanian hard-right NATO critic and leftist Prime Minister Marcel Ciolacu appeared in dead heat after the first round of presidential elections on Sunday, partial tallies showed, in a shock result threatening Romania’s staunchly pro-Ukraine stance.
After nearly 90 percent of votes were counted, Calin Georgescu, 62, was at 22 percent, while Ciolacu had 21.7 percent. However, ballots from the sizeable Romanian diaspora, which are not included in the main tally, showed a center-right politician, Elena Lasconi, 52, first with 33.4 percent and Georgescu second.
Romania’s president has a semi-executive role that gives him or her control over defense spending — likely to be a difficult issue as Bucharest comes under pressure to uphold NATO spending goals during Donald Trump’s second term as US president while trying to reduce a heavy fiscal deficit.
Lasconi told supporters after exit polls were released giving her a small lead over Georgescu, with Ciolacu in first place, that she was optimistic about making the runoff. “But as you can see, the results are very tight, let us wait until tomorrow’s results to rejoice.”
Campaigning focused largely on the soaring cost of living, with Romania having the EU’s biggest share of people at risk of poverty.
Georgescu is a former prominent member of the hard-right Alliance for Uniting Romanians party.
In 2021 he has called NATO’s ballistic missile defense shield in the Romanian town of Deveselu a “shame of diplomacy” and said the North Atlantic alliance will not protect any of its members should they be attacked by Russia.
Lasconi, a former journalist, joined the Save Romania Union (USR) in 2018 and became party head this year. She believes in raising defense spending and helping Ukraine, and surveys suggest she would beat Ciolacu in a runoff.
Romania shares a 650-km (400-mile) border with Ukraine and since Russia attacked Kyiv in 2022, it has enabled the export of millions of tons of grain through its Black Sea port of Constanta and provided military aid, including the donation of a Patriot air defense battery.
“It will be a tight run-off, with the Social Democrat leader more vulnerable to negative campaigning due to him being an incumbent PM,” said political commentator Radu Magdin.
Somalia says 24 people have died after 2 boats capsized in the Indian Ocean
- A delegation led by the Somali ambassador to Ethiopia is scheduled to travel to Madagascar on Monday to investigate the incident and coordinate efforts to help survivors
MOGADISHU, Somalia: Twenty-four people died after two boats capsized off the Madagascar coast in the Indian Ocean, Somalia’s government said Sunday.
Somalia’s Foreign Minister Ahmed Moalim Fiqi said 46 people were rescued.
“We are working tirelessly to ensure the survivors are brought back home safely and provided with the necessary care,” he said.
Most of the passengers were young Somalis, and their intended destination remains unclear. Many young Somalis embark every year on dangerous journeys in search of better opportunities abroad.
A delegation led by the Somali ambassador to Ethiopia is scheduled to travel to Madagascar on Monday to investigate the incident and coordinate efforts to help survivors.
Fiqi also said Sunday that Somalia’s ambassador to Morocco will look into a separate report of Somali youth stranded on Morocco’s coastline. It is not clear when the Morocco incident took place and Fiqi did not provide details.
The UN migration agency has in the past raised concern over rising cases of irregular migration from the Horn of Africa countries as people flee from conflict and drought.
In April, 38 migrants died and 22 others were rescued from a shipwreck off Djibouti on a popular route to Yemen. Most of those rescued were of Somali and Ethiopian nationalities.
‘It wasn’t just about me’: Imam honored for unity efforts after UK race riots
- Three children were killed, and 10 others — eight of whom were children — were injured in an attack in Southport
- In days following attack, crowds gathered to demonstrate outside Liverpool mosque
LONDON: A Muslim leader in the UK has been recognized for his efforts to foster unity after embracing protesters outside Liverpool’s Abdullah Quilliam Mosque in the wake of a knife attack in the northern English town of Southport in July.
Three children were killed, and 10 others — eight of whom were children — were injured in the attack.
Axel Rudakubana was detained and charged with three counts of murder, 10 counts of attempted murder, and possession of a bladed article.
In the days following the attack, crowds gathered to demonstrate outside the mosque in Liverpool after misinformation was spread online about the knife attack suspect.
Imam Adam Kelwick described how he approached protesters outside the mosque once tensions had eased, offering food, handshakes, and conversations.
Photographs of the peaceful exchanges, which included sharing food and even hugs, went viral, symbolizing a moment of reconciliation.
After receiving the Most Impactful Imam accolade at the British Beacon Mosque Awards, Kelwick said: “It wasn’t just about me. I’m dedicating this award to the people of Liverpool, who really came together during difficult times.”
He added: “Some of the most vocal protesters, after everyone else had gone, came inside the mosque for a little tour.”
The imam praised Liverpool’s residents for their unity.
“For those who knew better than to blame a whole religion for the evil actions of one person, for those who came to defend our mosque, and even for those who protested but later reflected and opened their hearts,” he said.
Kelwick, also a humanitarian aid worker and long-time volunteer, expressed gratitude for the award, which recognizes the contributions of mosques and leaders across the UK.
India mosque survey sparks clashes, two dead
- Hindu nationalist activists were emboldened earlier this year when Modi inaugurated a grand new Hindu temple in Ayodhya, built on grounds once home to Babri mosque
LUCKNOW: Indian Muslim protesters clashed with police Sunday with at least two people killed in riots sparked by a survey investigating if a 17th-century mosque was built on a Hindu temple.
“Two persons were confirmed dead,” Pawan Kumar, a police officer in Sambhal in the northern state of Uttar Pradesh, told AFP, adding that 16 police officers were “seriously injured” during the clashes.
The Press Trust of India news agency quoted officials saying three people had died.
Hindu activist groups have laid claim to several mosques they say were built over Hindu temples during the Muslim Mughal empire centuries ago.
Street battles broke out when a team of surveyors entered the Shahi Jama Masjid in Sambhal on orders from a local court, after a petition from a Hindu priest claiming it was built on the site of a Hindu temple.
Protesters on Sunday hurled rocks at police, who fired tear gas canisters to clear the crowd.
Hindu nationalist activists were emboldened earlier this year when Prime Minister Narendra Modi inaugurated a grand new Hindu temple in the northern city of Ayodhya, built on grounds once home to the centuries-old Babri mosque.
That mosque was torn down in 1992 in a campaign spearheaded by members of Modi’s party, sparking sectarian riots that killed 2,000 people nationwide, most of them Muslims.
Some Hindu campaigners see an ideological patron in Modi.
Calls for India to more closely align the country’s officially secular political system with its majority Hindu faith have rapidly grown louder since Modi was swept to office in 2014, making the country’s roughly 210-million-strong Muslim minority increasingly anxious about their future.
Man in critical condition after stabbing on London’s Westminster Bridge
- Authorities have said that the incident is not being treated as terrorism-related
LONDON: A man is in critical condition after being stabbed during a reported fight on Westminster Bridge in central London, the Metropolitan Police confirmed on Sunday.
Emergency services, including the London Ambulance Service and an air ambulance, were called to the scene at about 10:45 UK time and an injured man was rushed to hospital for treatment.
A London London Ambulance Service spokesperson said: “We were called today (Sunday) at 10.46 a.m. to reports of an incident on Westminster Bridge, SW1.
“We sent a number of resources including ambulance crews, an advanced paramedic, an incident response officer and London’s air ambulance.
“We treated a man at the scene before taking him to hospital,” they added.
Three individuals have been arrested on suspicion of attempted murder, while a fourth has been detained for affray, the BBC reported.
Two of the arrested suspects sustained minor facial injuries and were also taken to hospital, according to police.
Authorities have said that the incident is not being treated as terrorism-related.
In March 2017, Briton Khalid Masood drove a car into pedestrians who were walking on the pavement along Westminster Bridge and Bridge Street, injuring more than 50 people, four of them fatally, before killing an unarmed police officer in the grounds of the Palace of Westminster.
He was then shot by an armed police officer, and died at the scene.
