Warren Buffett's Berkshire Hathaway trims huge Apple stake as cash, operating profit set records

Warren Buffett's Berkshire Hathaway trims huge Apple stake as cash, operating profit set records

Berkshire Hathaway reported a significant increase in its cash reserves to $189 billion.

A cutout picture of Berkshire Hathaway Chairman Warren Buffett welcomes shareholders to shop at the Pampered Chef booth at the Berkshire Hathaway Inc annual shareholders' meeting in Omaha, Nebraska, U.S. May 3, 2024. REUTERS/Scott Morgan
Pranav Dixit
  • May 04, 2024,
  • Updated May 04, 2024, 8:00 PM IST

Shareholders from far and wide are gathering for Berkshire Hathaway's annual meeting to catch a glimpse of Warren Buffett, the legendary investor, and possibly his successor. This marks Buffett's 60th year at the helm of Berkshire Hathaway.

In anticipation of the meeting, Berkshire Hathaway reported a significant increase in its cash reserves to $189 billion, while its stake in Apple saw a decline. Buffett's praise for Apple's leadership has been well-known, but concerns have arisen about the size of its share in Berkshire's portfolio.

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The value of Berkshire's stake in Apple fell 22% to $135.4 billion as of March 31 from $174.3 billion at the end of 2023, even though the iPhone maker's share price fell just 11% in the quarter. Based on Apple's stock price changes, Berkshire appears to have sold 13% of its Apple shares in the quarter, ending with about $790 million.

Hundreds of eager shareholders queued up overnight in downtown Omaha, with some arriving from as far as Hong Kong. 

Inside the arena, Buffett and his team are set to answer questions for about five hours, with Vice Chairman Greg Abel expected to play a significant role. Abel was designated as Buffett's successor in 2021. The absence of Charlie Munger, Buffett's long-time friend and partner who passed away recently, is keenly felt by attendees.

Among the topics of interest for shareholders are Berkshire's future direction, its diverse range of businesses, and its substantial cash reserves. Succession planning and the company's response to challenges like acquisitions and dividends are also key concerns.

Despite Berkshire's strong performance over the years, questions remain about its future strategies and how it will adapt to changing market conditions. Shareholders are also expected to vote on several proposals relating to climate, diversity, and China, all of which Buffett opposes.

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