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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 2
Warren gets criticized for not selling KO when it got to nosebleed valuations. Seems like he learned from that.
No. of Recommendations: 24
Warren gets criticized for not selling KO when it got to nosebleed valuations. Seems like he learned from that.
As has been discussed a few times, I am hesitant to use the current price of Apple stock as a decent proxy for its value when the multiples get high.
But in this case, I have a suspicion that the lightening of Apple isn't related to valuation levels, nor to a material downwards revision of Apple's long term earning power.
Instead, I think it is "Rule 1" related to China exposure: just plain too much of the portfolio at risk of permanent loss of capital if things go pear shaped. It's consistent with having ditched the BYD position.
Of course I'm just guessing. Maybe there will be a comment to give more colour.
Jim
No. of Recommendations: 2
china for sure and warren just mentioned Cap gains rates most likely going up while discussing Apple trimming
No. of Recommendations: 2
Agree.
Apple is nowhere near the nosebleed valuation where Buffett got the itch to trim KO a couple decades ago but did not and later admitted that was a mistake….buts it’s rich multiple.
It was a nice try suggesting the 21% tax rate drove this. No one buys this. That’s fine.. it’s grown into too big a chunk of the portfolio, it’s high priced, and exposes Berkshire to a little more China and Regulation everywhere risk than it’s comfortable with. And it will likely remain the largest holding for some time. If it doubles next year—Berkshre will sell a little more.
No. of Recommendations: 0
https://youtu.be/7OG2LBjmNQM?si=_wxmxBY_bUZ3W4xCJust watched the 10 min segment linked above. Non the wiser about why he sold it.
Mentioned a reduction but would still be out largest holding, rambled about valuation and taxes but nothing specific about relating to the sale. Becky mentioned 115m shares sold so $20.7bn?
No. of Recommendations: 4
Becky mentioned 115m shares sold so $20.7bn?
It has to be less than that since the total proceeds from all stock sales in the quarter were $19.972 Billion. (page 6, statement of cash flows). The exact number of shares sold is unknown until he files a 13-F since there is considerable rounding error involved in estimating. Something like 115 - 116 million shares sold probably. I would assume he did not stop selling at quarter end because he was very confident that we were going to see the $182 B cash figure hit $200 Billion by 6/30.
No. of Recommendations: 0
Yes was averaging 180 x 115m but average could well be lower 👍 she said 115m right at the begining of the clip.
No. of Recommendations: 0
No. of Recommendations: 15
It was a nice try suggesting the 21% tax rate drove this. No one buys this. That’s fine.. it’s grown into too big a chunk of the portfolio, it’s high priced, and exposes Berkshire to a little more China and Regulation everywhere risk than it’s comfortable with.
I'm not one to think people are fibbing, but this all sounds pretty good. He will answer questions with the subset of the truth that is polite and suitable for public consumption.
My guru once told me: one should always tell the truth, but that truth should be a sweet truth.
Notice that in the Hong Kong question, he started a sentence about BYD, then simply switched to talking about Charlie's biggest table-pounders. Perhaps it was best not to say anything at all about why so much BYD was sold. The business (which we know is the thing that matters, right?) is doing tremendously well lately.
Jim
No. of Recommendations: 4
Well said, Jim. You are more diplomatic than I. Obviously, Warren is too.
Not to mention, Tim Cook was sitting directly in front of Warren as he responded.
So a lengthy explanation and commentary on present and possible future corporate tax rates tax rates is just fine thank you :)
