During Berkshire Hathaway’s recent first quarter shareholder meeting, Warren Buffett announced that the company had sold a significant number of Apple shares. Despite this move, Buffett’s confidence in the company remains unwavering. The reasons behind the share sales were primarily tax-driven, with the company’s cash reserves currently at around $189 billion.
Despite decreasing its holdings in Apple by 13% to 790 million shares valued at just under $150 billion, Buffett clarified that his positive view of the company has not changed. He emphasized that Berkshire Hathaway pays whatever taxes the government requires and has long been an advocate for higher taxes on the wealthy. The company paid five billion dollars in federal taxes last year alone.
Berkshire Hathaway’s CEO Tim Cook will be present at the meeting, as Berkshire Hathaway is Apple’s largest shareholder outside of financial companies that manage ETFs. Other significant investments include American Express and Coca-Cola, alongside Apple. Buffett expressed confidence that these companies will remain in Berkshire’s portfolio, even with the succession of Greg Abel as the new executive.
Warren Buffett, at 89 years old, provided insights into the future of his company and its investment strategy during the meeting. Despite its massive size, Berkshire Hathaway continues to generate remarkable profits which have made Buffett one of the most successful investors in the world.