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
Republicans push back against Democrats' claims that Trump intelligence pick Gabbard is compromised
- Democrats have cast doubts on Gabbard for her comments supportive of Russia and secret meetings, as a congresswoman, with Syria’s president, a close ally of the Kremlin and Iran
- Gabbard, a former US ational Guard officer and a former Democrat, also has suggested that Russia had legitimate security concerns in deciding to invade Ukraine, given its desire to join NATO
FORT LAUDERDALE, Florida: Republican senators pushed back on Sunday against criticism from Democrats that Tulsi Gabbard, Donald Trump’s pick to lead US intelligence services, is “compromised” by her comments supportive of Russia and secret meetings, as a congresswoman, with Syria’s president, a close ally of the Kremlin and Iran.
Sen. Tammy Duckworth, an Illinois Democrat and veteran of combat missions in Iraq, said she had concerns about Tulsi Gabbard, Trump’s choice to be director of national intelligence.
“I think she’s compromised,” Duckworth said on CNN’s “State of the Union,” citing Gabbard’s 2017 trip to Syria, where she held talks with Syrian President Bashar Assad. Gabbard was a Democratic House member from Hawaii at the time.
“The US intelligence community has identified her as having troubling relationships with America’s foes. And so my worry is that she couldn’t pass a background check,” Duckworth said.
Gabbard, who said last month she is joining the Republican Party, has served in the Army National Guard for more than two decades. She was deployed to Iraq and Kuwait and, according to the Hawaii National Guard, received a Combat Medical Badge in 2005 for “participation in combat operations under enemy hostile fire in support of Operation Iraqi Freedom III.”
Duckworth’s comments drew immediate backlash from Republicans.
“For her to say ridiculous and outright dangerous words like that is wrong,” Sen. Markwayne Mullin, a Republican from Oklahoma, said on CNN, challenging Duckworth to retract her words. “That’s the most dangerous thing she could say — is that a United States lieutenant colonel in the United States Army is compromised and is an asset of Russia.”
In recent days, other Democrats have accused Gabbard without evidence of being a “Russian asset.” Sen. Elizabeth Warren, a Massachusetts Democrat, has claimed, without offering details, that Gabbard is in Russian President Vladimir “Putin’s pocket.”
Mullin and others say the criticism from Democrats is rooted in the fact that Gabbard left their party and has become a Trump ally. Democrats say they worry that Gabbard’s selection as national intelligence chief endangers ties with allies and gives Russia a win.
Rep. Adam Schiff, a California Democrat just elected to the Senate, said he would not describe Gabbard as a Russian asset, but said she had “very questionable judgment.”
“The problem is if our foreign allies don’t trust the head of our intelligence agencies, they’ll stop sharing information with us,” Schiff said on NBC’s “Meet the Press.”
Gabbard in 2022 endorsed one of Russia’s justifications for invading Ukraine: the existence of dozens of US-funded biolabs working on some of the world’s nastiest pathogens. The labs are part of an international effort to control outbreaks and stop bioweapons, but Moscow claimed Ukraine was using them to create deadly bioweapons. Gabbard said she just voiced concerns about protecting the labs.
Gabbard also has suggested that Russia had legitimate security concerns in deciding to invade Ukraine, given its desire to join NATO.
Republican Sen. Eric Schmitt of Missouri said he thought it was “totally ridiculous” that Gabbard was being cast as a Russian asset for having different political views.
“It’s insulting. It’s a slur, quite frankly. There’s no evidence that she’s a asset of another country,” he said on NBC.
Sen. James Lankford, another Oklahoma Republican, acknowledged having “lots of questions” for Gabbard as the Senate considers her nomination to lead the intelligence services. Lankford said on NBC that he wants to ask Gabbard about her meeting with Assad and some of her past comments about Russia.
“We want to know what the purpose was and what the direction for that was. As a member of Congress, we want to get a chance to talk about past comments that she’s made and get them into full context,” Lankford said.
Uruguay’s center-left Orsi leads presidential runoff, exit polls say
MONTEVIDEO: Early exit polls in Uruguay’s presidential election indicated on Sunday that the center-left opposition candidate Yamandu Orsi is ahead of his conservative rival Alvaro Delgado in a closely fought second-round race that promises to be a photo finish.
Orsi had secured 49.5 percent of the vote, according to an exit poll from Cifra, followed by 45.9 percent for Delgado for the ruling coalition. Equipos Consultores also predicted an Orsi win with 49.0 percent of the vote and 46.6 percent for Delgado.
Far-right populist surprises in Romanian presidential election appearing set to enter runoff
- Thirteen candidates ran for the presidency in the European Union and NATO member country.
- Hard-right Georgescu has questioned NATO commitment to collective defense
BUCHAREST, Romania: A little-known, far-right populist took the lead in Romania’s presidential election Sunday, electoral data showed, and will likely face leftist Prime Minister Marcel Ciolacu in a runoff in two weeks, an outcome that rocked the country’s political landscape.
Calin Georgescu, who ran independently, led the polls with around 22 percent of the vote, while Ciolacu of the Social Democratic Party, or PSD, trailed at 20 percent. Elena Lasconi of the Save Romania Union party, or USR, stood at about 18 percent, and George Simion, the leader of the far-right Alliance for the Unity of Romanians, or AUR, took 14.1 percent.
After polls closed, 9.4 million people — about 52.4 percent of eligible voters — had cast ballots, according to the Central Election Bureau. The second round of the vote will be held Dec. 8.
Thirteen candidates ran for the presidency in the European Union and NATO member country. The president serves a five-year term and has significant decision-making powers in areas such as national security, foreign policy and judicial appointments.
Georgescu, 62, ran independently and was not widely known. He outperformed most local surveys, sending shockwaves through Romania’s political establishment as he ascended to poll position.
After casting his ballot on Sunday, Georgescu said in a post on Facebook that he voted “For the unjust, for the humiliated, for those who feel they do not matter and actually matter the most … the vote is a prayer for the nation.”
Cristian Andrei, a political consultant based in Bucharest, told The Associated Press that Georgescu’s unexpected poll performance appears to be a “large protest or revolt against the establishment.”
“The mainstream political parties have lost the connection with regular Romanians,” he said. “You don’t have strong candidates or strong leaders … there are weak candidates, weak leaders, and the parties in general are pretty much disconnected.”
Georgescu lacks an agenda, Andrei added, and has a vague and populist manifesto with positions that are “beyond the normal discourse.” His stances include supporting Romanian farmers, reducing dependency on imports, and ramping up energy and food production.
According to his website, Georgescu holds a doctorate in pedology, a branch of soil science, and held different positions in Romania’s environment ministry in the 1990s. Between 1999 and 2012, he was a representative for Romania on the national committee of the United Nations Environment Program.
Videos posted to his popular TikTok account, where he has amassed 1.6 million likes, depict him attending church, doing judo, running around an oval track, and speaking on podcasts.
Ahead of Sunday’s vote, many had expected to see Simion, a vocal supporter of US President-elect Donald Trump, face Ciolacu in the second round. He campaigned for reunification with Moldova, which this year renewed a five-year ban on him entering the country over security concerns, and he is banned for the same reason from neighboring Ukraine.
Ecaterina Nawadia, a 20-year-old architecture student, said she voted for the first time in a national election on Sunday and hoped young people turn out in high numbers.
“Since the (1989) revolution, we didn’t have a really good president,” she said. “I hope most of the people my age went to vote … because the leading candidate is not the best option.”
Romania will also hold parliamentary elections on Dec. 1 that will determine the country’s next government and prime minister.
As the ballots were still being counted, Simion said he congratulated Georgescu and that he was “Very happy that approximately 40 percent of the votes of Romanians went toward the sovereign option” and would be in the second round.
Andrei, the political consultant, said Romania’s large budget deficit, high inflation, and an economic slowdown could push more mainstream candidates to shift toward populist stances amid widespread dissatisfaction.
Ciolacu told the AP before the first-round vote that one of his biggest goals was “to convince Romanians that it is worth staying at home or returning” to Romania, which has a massive diaspora spread throughout EU countries.
Other candidates included former NATO deputy general secretary Mircea Geoana, who ran independently and obtained about 6 percent; and Nicolae Ciuca, a former army general and head of the center-right National Liberal Party, which is currently in a tense coalition with the PSD — who stood at 9.3 percent.
Geoana, a former foreign minister and ambassador to the United States, told the AP before Sunday’s vote that he believed his international experience would qualify him above the other candidates.
Lasconi, a former journalist and the leader of the USR, said she sees corruption as one of the biggest problems Romania faces and that she supports increased defense spending and continued aid to Ukraine.
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.
