Current:Home > MarketsWarren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter-InfoLens
Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter
View Date:2024-12-23 11:51:50
OMAHA, Neb. (AP) — Investor Warren Buffett ‘s company recorded a $47 billion gain on stock sales during the second quarter as he slashed Berkshire Hathaway’s massive Apple stake, but a drop in the paper value of its remaining investments drug down earnings despite improvements in the myriad companies it owns.
Selling off a big chunk of its Apple holdings was the quarter’s biggest news — Buffett once called the company’s stake in the iPhone maker a pillar of Berkshire’s business that he intended to hold indefinitely. The other major investment moves Buffett made during the quarter included continued cuts to its investment in Chinese EV maker BYD and selling off some of its Bank of America stock.
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.
Berkshire 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 when the paper value of its investment portfolio was up $24.2 billion.
This year the value of the investments Berkshire continues to hold fell $28.2 billion.
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% 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.
veryGood! (6212)
Related
- Arkansas governor unveils $102 million plan to update state employee pay plan
- Stud Earrings That We Think Are 'Very Demure, Very Cutesy'
- Former Cornell student gets 21 months in prison for posting violent threats to Jewish students
- Prince William Debuts New Beard Alongside Kate Middleton in Olympics Video
- Wicked's Ethan Slater Shares How Ariana Grande and Cynthia Erivo Set the Tone on Set
- All-Star, Olympian Dearica Hamby files federal lawsuit against WNBA, Las Vegas Aces
- Julianne Hough Reflects on Death of Her Dogs With Ex Ryan Seacrest
- Jordan Chiles medal inquiry: USA Gymnastics says arbitration panel won’t reconsider decision
- Ryan Reynolds Clarifies Taylor Swift’s Role as Godmother to His Kids With Blake Lively
- An ex-Kansas police chief who led a raid on a newspaper is charged with obstruction of justice
Ranking
- Disney x Lululemon Limited-Edition Collection: Shop Before It Sells Out
- Katie Couric says CBS' decision to replace Norah O'Donnell with 2 men is 'out of touch'
- Ohio State leads USA TODAY Sports preseason college football All-America team
- Robert F. Kennedy Jr. can remain on the North Carolina presidential ballot, judge says
- Former Disney Star Skai Jackson Is Pregnant, Expecting First Baby With Her Boyfriend
- Federal judge orders 100-year-old Illinois prison depopulated because of decrepit condition
- 20 Best Products That Help Tackle Boob Sweat and Other Annoying Summer Problems
- Ex-Cornell student sentenced to 21 months for making antisemitic threats
Recommendation
-
Maine elections chief who drew Trump’s ire narrates House tabulations in livestream
-
Californians: Your rent may go up because of rising insurance rates
-
Stud Earrings That We Think Are 'Very Demure, Very Cutesy'
-
Jarren Duran suspended 2 games by Red Sox for shouting homophobic slur at fan who heckled him
-
Timothée Chalamet Details How He Transformed Into Bob Dylan for Movie
-
Americans are becoming less religious. None more than this group
-
Jets shoot down Haason Reddick's trade request amid star pass rusher's holdout
-
Diaper Bag Essentials Checklist: Here Are the Must-Have Products I Can't Live Without