💰 Berkshire Slashes Apple Stake
Warren Buffett has been raising cash
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Warren Buffett’s Berkshire Hathaway, the 8th largest company in the world, shocked Wall Street this weekend.
📱📉 Berkshire sold nearly half of its Apple stock.
We are talking about 390 million AAPL shares worth ~$81 billion at today’s price.
The conglomerate has been a net seller in Q2, selling $77 billion of stocks, bringing the company’s cash pile to $277 billion at the end of June.
What's behind Buffett's massive cash grab?
Could it be connected to this week’s stock market meltdown?
Today at a glance:
Berkshire Q2 FY24.
Insights from Buffett selling Apple.
Why did Buffett choose cash over stocks?
1. Berkshire Q2 FY24
Berkshire Hathaway owns many businesses across various industries, from insurance and finance to manufacturing and retail. The company's portfolio includes well-known brands such as GEICO, Dairy Queen, Duracell, and several lesser-known but highly profitable subsidiaries.
Income statement:
Revenue grew +1% Y/Y to $93.7 billion.
🦎 Insurance grew +11% Y/Y to $26.0 billion (27% operating margin).
🚊 BNSF flat Y/Y to $5.8 billion (28% margin).
⚡️ BHE grew +2% Y/Y to $6.5 billion (5% margin).
⛽ Pilot declined 12% to $13.0 billion (2% margin).
🧑🏼🏭 Manufacturing grew +4% Y/Y to $19.8 billion (16% margin).
🍔 McLane declined 3% Y/Y to $12.5 billion (1% margin).
🍫 Services & retailing decline 2% Y/Y to $9.9 billion (10% margin).