Berkshire Hathaway operates businesses in railroads, insurance, consumer brands and has an investment portfolio worth $336bn.
Berkshire Hathaway reported $12.7 billion profit in Q1 2023, a 64% drop from the same period last year.
Warren Buffett sold about 13% of Berkshire Hathaway's Apple shares but remains a fan.
In a surprising turn of events, Berkshire Hathaway reported strong operating earnings and a record pile of cash in the first quarter of 2023, despite trimming its stake in Apple by about 13%. The company disclosed this information during its annual meeting, which was the first since the death of Charles Munger, Warren Buffett's longtime business partner. Despite selling a significant amount of shares in Apple, Warren Buffett maintained that he remains a fan of the iPhone and believes it to be one of the greatest products ever created. Berkshire Hathaway owns a diverse array of businesses from railroads and running shoes to insurance and Squishmallows stuffed toys, as well as an investment portfolio worth $336bn. Buffett compared the Berkshire Hathaway annual meeting to 'a Mardi Gras' for his followers, with attendees including Bill Gates and Jane Fraser. The company reported a $12.7 billion profit, or $8.825 per Class A share, in the first quarter, which is a 64% drop from the same time last year. This decline was largely due to fluctuations in the value of Berkshire's stock holdings rather than its actual operating earnings. For the first three months of 2023, Berkshire reported $12.7 billion in earnings attributable to its shareholders, down 64% from the same time last year. However, Buffett has long warned shareholders not to focus on the fluctuations in the company's stock holdings. Berkshire also disclosed that it had trimmed its stake in Apple by about 13%, reducing its value to $135.4bn from $174.3bn at the end of 2023. Despite this sale, Buffett emphasized that Berkshire Hathaway remains a key investor in Apple and expects it to remain one of the largest common stock holdings in the company. The value of Berkshire's stake in Apple is expected to be extremely likely to be the largest by the end of 2023. Buffett encouraged investors to focus on Berkshire's operating earnings rather than its net income, which he believes provides a more accurate picture of the conglomerate's performance. Despite selling billions of dollars worth of shares in Apple, Buffett expressed his continued admiration for the company and its products. He also praised Greg Abel, who is set to succeed him as Berkshire's CEO, calling him 'a very able fellow'. In addition to its investment portfolio, Berkshire Hathaway operates businesses in a variety of industries including railroads, insurance, and consumer brands. The company's annual meeting attracted thousands of shareholders to Omaha, Nebraska. Notable attendees included Bill Gates and Jane Fraser. Berkshire Hathaway's success is largely attributed to Warren Buffett's unique investment strategy and long-term vision, which has consistently outperformed the market over the past decades. Despite recent fluctuations in its stock price, Berkshire Hathaway remains a strong and stable company with a diverse portfolio of businesses and investments.
Apple sold $45.96 billion worth of iPhones in Q2 2024, a decrease of 10% compared to the previous year.
Apple is excited about its potential for virtual reality headsets and artificial intelligence.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The author makes editorializing statements and uses emotional manipulation by expressing excitement and disappointment about Apple's stock performance. He also engages in selective reporting by focusing on the decline in revenue and Apple's failure to meet expectations, while ignoring positive aspects such as growth in services revenue. The author also implies that Warren Buffett is trying to manipulate the price of Apple stock by praising it before selling more shares.
Is Buffett praising the company to keep the price as high as possible as he unloads more of Apple?
Apple stock will rise if the company’s quarterly performance and guidance exceed expectations.
Sadly for investors, ‘the $3,500 device is expected to sell in low quantities.’
Can Apple Buy Back Enough Stock To Elevate Its Price?
Fallacies
(85%)
The author makes an appeal to authority by quoting CNBC multiple times and implying that their analysis is valid due to the source. The author also uses inflammatory rhetoric by stating 'Sadly for investors, the $3,500 device is expected to sell in low quantities' and 'Apple has lost its ability to invest for growth. Steve Jobs would be rolling in his grave if he could see how far Apple has deviated from his strategy of innovating the company’s way to success.'
Is Buffett praising the company to keep the price as high as possible as he unloads more of Apple? I do not know what he is thinking.
Buffett told shareholders he was paying a 21% tax rate in 2024 and could pay ‘a little higher percentage later on.’
Apple struck an optimistic note about the current quarter. The company expects double-digit year-over-year percentage growth in iPad sales and continued high growth in Apple’s Services division.
Steve Jobs would be rolling in his grave if he could see how far Apple has deviated from his strategy of innovating the company’s way to success.
Bias
(80%)
The author expresses a negative opinion towards Apple's declining revenue and lack of growth catalysts, which could be seen as a bias against the company. He also suggests that Warren Buffett may be selling Apple stock to avoid higher tax rates in the future, implying that Buffett's actions are driven by monetary considerations.
Apple revenues declining and the absence of concrete growth catalysts
If he is so fond of Apple, why did Buffett sell about 116 million shares in the first quarter?
Berkshire Hathaway reported strong operating earnings in the first quarter of 2023.
Warren Buffett remains a fan of Apple despite trimming the company’s stake by about 13% in the quarter.
Berkshire Hathaway reported $12.7 billion in earnings attributable to its shareholders for the first three months of 2023.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains one instance of a hasty generalization fallacy. The author states that Berkshire Hathaway's earnings 'track the actual profit that its array of businesses produce,' but then later in the article, he reports a significant decrease in earnings attributable to shareholders due to a steep fall in the paper value of Berkshire's investment portfolio. While operating earnings are important, they do not tell the whole story about Berkshire Hathaway's financial health. The author's hasty generalization that operating earnings are the only way to judge Berkshire overlooks other important factors such as changes in the value of its investments.
]The company also disclosed in its first-quarter earnings that it had trimmed its stake in Apple, but Warren Buffett, its C.E.O., said he remained a fan of Apple.[/] []For the first three months of the year, Berkshire reported $12.7 billion in earnings attributable to its shareholders, down 64 percent from the same time a year ago.[
Warren Buffett maintains his belief in Apple despite the share sale, stating that the iPhone is ‘one of the greatest products... maybe the great product... of all time’
Berkshire Hathaway owns a diverse array of businesses from railroads and running shoes to insurance and Squishmallows stuffed toys, as well as an investment portfolio worth $336bn.
Buffett compared the Berkshire Hathaway annual meeting to ‘a Mardi Gras’ for his followers, with attendees including Bill Gates and Jane Fraser.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
No overt logical fallacies found in the article. However, there are some problematic statements that border on appeal to authority and inflammatory rhetoric.
] The billionaire investment tycoon Warren Buffett has stressed his empire will remain a key investor in Apple after it sold billions of dollars' worth of shares in the iPhone maker.
Buffett maintained on Saturday that the device is “one of the greatest products – maybe the great product – of all time”.
Bill Gates, the Microsoft co-founder; Jane Fraser, the CEO of Citigroup; and Bill Murray, the actor and comedian, were among those in attendance at the meeting on Saturday.
