Buffett Applauds Apple After Reducing Investment, Sells Off Paramount Stake

At Berkshire Hathaway Inc.’s annual meeting in Omaha, Warren Buffett made headlines by praising Apple Inc. despite cutting his stake in the tech giant. Berkshire reported a $135.4 billion share in Apple at the end of the first quarter, down from $174.3 billion at the year-end, sparking discussions among attendees.

Buffett lauded Apple as being “even better” than American Express and Coca-Cola, two other major investments of Berkshire. He emphasized the iPhone’s significance, calling it one of the greatest products of all time. Despite facing challenges like a $2 billion antitrust fine and slumping sales in China, Apple remains Berkshire’s largest investment.

The sale of Apple shares boosted Berkshire’s cash reserves to a record $189 billion, with Buffett hinting it could reach $200 billion by the end of the quarter. The conglomerate’s businesses generated $11.2 billion in operating earnings, a 39% increase from the previous year, driven by improved results in its insurance businesses.

However, Berkshire’s PacifiCorp recorded $2.4 billion in estimated pre-tax probable losses from wildfires in Oregon and California. The absence of Charlie Munger, Buffett’s longtime business partner who passed away in November, cast a shadow over the meeting, with Buffett reminiscing about their shared experiences.

Buffett also addressed succession planning, expressing confidence in Greg Abel and Ajit Jain to lead Berkshire in the future. The meeting concluded with Berkshire selling its position in Paramount Global at a loss, highlighting the challenges in the traditional TV industry. Despite the changes and challenges, Buffett remains optimistic about the future of Berkshire Hathaway.