What Buffett Said at Berkshire’s Annual Meeting
- Berkshire Hathaway reduced its holding in Apple by 13% in the first quarter
- Berkshire has a history of reducing equity holdings over multiple quarters
- Apple shares closed down 0.9% on Monday
- Buffett addressed the Apple holding at Berkshire’s annual meeting
- Apple accounts for nearly 40% of Berkshire’s equity portfolio
- Berkshire’s cash position could hit $200 billion at the end of the current quarter
- Berkshire is unlikely to sell its longstanding big stakes in Coca-Cola and American Express
- Apple now trades for about 27 times the earnings expected for its current fiscal year
Berkshire Hathaway reduced its holding in Apple by 13% in the first quarter, and there are indications that it could continue to reduce its stake in the current quarter. This follows Berkshire’s history of gradually reducing equity holdings over multiple quarters. Apple shares closed down 0.9% on Monday, possibly reflecting disappointment among investors and the potential for further reduction in Berkshire’s stake. At Berkshire’s annual meeting, Buffett mentioned that Apple is likely to remain the largest common stockholding, but given its size relative to other holdings, there is room for further reduction. Apple accounts for nearly 40% of Berkshire’s equity portfolio. Berkshire’s cash position is expected to reach $200 billion by the end of the current quarter, with operating profits after taxes running at about $10 billion per quarter. While Berkshire is unlikely to sell its big stakes in Coca-Cola and American Express, Apple is a more likely candidate for stock sales due to its high P/E ratio. Berkshire accumulated the bulk of its Apple holding from 2016 to 2018, with an average purchase price of $35 per share.
Factuality Level: 7
Factuality Justification: The article provides factual information about Berkshire Hathaway reducing its holding in Apple, the history of Berkshire reducing equity holdings, the current status of Apple shares, Berkshire’s cash position, and Buffett’s investment strategy. The article does not contain any obvious misinformation, sensationalism, bias, or invalid arguments. However, it includes some unnecessary details and tangential information that could be considered digressions.
Noise Level: 3
Noise Justification: The article provides relevant information about Berkshire Hathaway reducing its holding in Apple, the reasons behind it, and the potential implications. It includes details about Berkshire’s history of reducing equity holdings, Apple’s stock performance, and Buffett’s comments. The article stays on topic and supports its claims with data and examples. However, it contains some repetitive information and could be more concise.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about Berkshire Hathaway reducing its holding in Apple, which could impact the financial markets and the companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses a financial event involving Berkshire Hathaway reducing its holding in Apple, which could have implications for both companies and the financial markets. However, there is no mention of an extreme event or its impact.
Public Companies: Berkshire Hathaway (BRK.A), Apple Inc. (AAPL), U.S. Bancorp (USB), Bank of New York Mellon (BK), Wells Fargo (WFC), Bank of America (BAC), Coca-Cola (KO), American Express (AXP)
Key People: Warren Buffett (Chairman and CEO of Berkshire Hathaway)
Reported publicly:
www.marketwatch.com 
