Warren Buffett’s annual meeting at Berkshire Hathaway is a highly anticipated event for investors seeking insights into the legendary investor’s investment strategy. This year’s meeting, dubbed the “Woodstock for Capitalists,” will be held in Omaha, Nebraska, and broadcast live by CNBC. One of the most surprising moves by Berkshire Hathaway in the fourth quarter of 2023 was the sale of 10 million Apple shares. While it represented only a small portion of Berkshire’s massive stake in Apple, the move raised eyebrows as Buffett has long been a vocal supporter of the tech giant. Some speculate that Berkshire’s investment deputies, Todd Combs and Ted Weschler, may have sold the shares to fund other purchases. This would not be the first time Berkshire’s deputies have made such a move, as they did the same in 2018. Another possible explanation for the Apple sale is that Buffett believes the stock has become overvalued. Apple’s stock surged 48% in 2023, outperforming the broader market. At its peak, Apple accounted for nearly 50% of Berkshire’s equity portfolio, a position that Buffett may have felt was too concentrated. Buffett may also shed light on the mystery bank stock that Berkshire Hathaway has been buying for the past two quarters. The conglomerate requested that the Securities and Exchange Commission keep the details of this purchase confidential, a rare move for Berkshire. The SEC filing revealed that Berkshire’s cost basis for “banks, insurance, and finance” equity holdings increased by $2.37 billion. Speculation is rife that the mystery bank stock may be a major player in the banking industry. Buffett could also address Berkshire Hathaway’s recent aggressive buying of Liberty Media’s tracking stock for New York-based satellite radio company SiriusXM. The Omaha-based conglomerate has been building its stake in a likely merger arbitrage play for several months. Most recently, a filing revealed that Berkshire bought more of these shares just this week, bringing its total holding to over 70 million. The conglomerate’s interest in SiriusXM is likely driven by the upcoming merger with Liberty Media, which would create a more streamlined ownership structure for the radio company. Analysts expect the deal to be finalized in early Q3. Paramount Global, another company in which Berkshire Hathaway has a significant stake, has recently faced some challenges. The entertainment company announced that CEO Bob Bakish is stepping down, replaced by a three-person “Office of the CEO.” This news comes amid ongoing merger talks with Skydance. Despite the potential buyout offer, Berkshire’s investment in Paramount may not yield a profit, as the conglomerate already trimmed its stake by about a third in the fourth quarter. Buffett has previously expressed pessimism about the streaming industry, citing intense competition and price wars. “You need higher prices, or it doesn’t work,” Buffett said at Berkshire’s 2023 annual meeting. “You’ve got a bunch of companies that don’t want to quit. And who knows what pricing does under that. But anybody who tells you that they know what pricing will do in the future is kidding themselves.”
Warren Buffett’s Investment Moves: Apple Sale, Mystery Bank Stock, and More
