Omaha, Nebraska – Renowned billionaire investor Warren Buffett provided insights into Berkshire Hathaway’s decisions regarding its stake in tech giant Apple at the company’s annual meeting. Despite Berkshire reducing its holdings in Apple by 22% to $135.4 billion, it remains the conglomerate’s largest stock investment. The decision resulted in an $11.2 billion after-tax gain for Berkshire in the quarter, contributing to the company’s record cash holdings of $189 billion.
Buffett, along with his late business partner Charlie Munger, views their stock investments as businesses rather than just marketable equities. He emphasized that companies like Apple are “wonderful” businesses and reiterated Berkshire’s intent to retain major holdings in these firms unless significant changes occur.
During the Q&A session, Buffett highlighted Apple CEO Tim Cook’s leadership and praised him as a great successor to the late Steve Jobs. He also addressed the tax implications of selling Apple stock and the current capital gains tax rate. Despite the lower rate currently, Buffett expressed a preference for holding a larger cash stake given uncertainties in the market and worldwide.
Buffett emphasized Berkshire’s willingness to pay taxes on the gains from selling Apple stock and pointed out the changing tax rates over the years. He underscored the importance of contributing to society through tax payments, reflecting a sense of responsibility toward the country.
In conclusion, Buffett’s remarks at the annual meeting shed light on Berkshire Hathaway’s investment strategies, highlighting the company’s long-term approach to stock holdings. The decision to reduce its stake in Apple while maintaining confidence in the tech giant’s business prospects reflects Berkshire Hathaway’s commitment to prudent financial management and strategic investment practices.