Berkshire Hathaway, the investment company owned by Warren Buffett, recently sold a significant number of Apple shares. Despite the move, Buffett’s confidence in the company remains unwavering. During Berkshire Hathaway’s first quarterly shareholder meeting in Omaha, where up to 40,000 shareholders gathered, Buffett explained the reasons for the stock sale. The company’s cash reserves are currently around $189 billion.
Berkshire Hathaway’s largest shareholder outside of financial companies that manage ETFs is Apple CEO Tim Cook, who will attend the meeting. The company’s stake in Apple fell 13% in the first quarter to 790 million shares worth just under $150 billion. Buffett clarified that his positive view of Apple has not changed, and that the sale is primarily driven by tax considerations.
Buffett has long advocated higher taxes on the wealthy and stressed that Berkshire Hathaway pays all the taxes the government demands. The company paid five billion dollars in federal taxes last year alone. In addition to Apple, Buffett’s other notable investments include American Express and Coca-Cola. He expressed confidence that these companies will remain in Berkshire’s portfolio, even with the succession of Greg Abell as the new CEO.
Warren Buffett, at the age of 89, provided insight into the future of his company and its investment strategy. Despite its enormous size, Berkshire Hathaway continues to generate extraordinary profits that have made Buffett one of the world’s most successful investors.