(That is the Warren Buffett Watch e-newsletter, information and evaluation on all issues Warren Buffett and Berkshire Hathaway. You may join right here to obtain it each Friday night in your inbox.)
Berkshire Hathaway’s B shares have rebounded 7.2% larger since their near-term closing low of $459.11 on August 4.
At that time, that they had dropped nearly 15% within the wake of Warren Buffett’s shock announcement in early Could that he can be stepping down as CEO on the finish of the yr.
That provides BRKB a YTD acquire of 8.6%. (The A shares are up 8.5%)
As Apple good points, Berkshire has roughly $50 billion in ‘misplaced’ earnings
Apple, which accounts for six.35% of the S&P index, additionally closed at a report excessive at this time.
At $262.82 per share, it is up greater than 50% since Berkshire began promoting shares within the fourth quarter of 2023.
Since then, Berkshire has minimize its stake to 280 million shares as of June 30 from nearly 916 million shares as of September 30, 2023.
That is a discount of 69%, though it stays the fairness portfolio’s largest holding.
There might been extra gross sales (or, conceivably, some shopping for) on this yr’s third quarter. We’ll get the brand new share rely from Berkshire in mid-November.
To date, the choice to promote is not trying superb.
If Berkshire had stored all its shares, the stake would have been valued at $241 billion at this time as a substitute of the present $74 billion (assuming there hasn’t been any motion within the third quarter), a $167 billion hole.
Barron’s estimates Berkshire’s common promoting value was round $185 per share, giving it a pretax acquire of round $96 billion, leaving roughly $50 billion “on the desk.”
And the earnings Berkshire did notice have been lowered by round $20 billion in taxes, by Barron’s calculations.
Buffett hasn’t stated a lot about why he has sharply lowered the Apple stake.
His solely public clarification got here in an reply to a shareholder query ultimately yr’s annual assembly.
Buffett stated he expects Apple will stay Berkshire’s largest fairness place nicely into the long run, calling it a fair higher enterprise than long-time holdings American Categorical and Coca-Cola.
However he additionally expects capital good points tax charges can be heading larger, so he thought shareholders would not thoughts paying a decrease charge on what he then known as a “little” Apple sale, moderately than a better charge later.
At the moment, Berkshire had solely lowered its stake by round 14%.
A video clip and transcript are in “Highlights from the Archive” under.
Jazwares has been teaming up
Berkshire Hathaway’s Jazwares, recognized for its “Squishmallows,” introduced two partnerships this week.
It is going to be the “official worldwide plush Licensee” of subsequent yr’s FIFA World Cup.
The product line, together with the “extremely anticipated official mascot” of the soccer (US)/soccer (UK) match can be launched subsequent June.
BUFFETT AROUND THE INTERNET
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HIGHLIGHTS FROM THE ARCHIVE
Buffett: Prospect of upper tax charge sooner or later made sale of Apple shares extra engaging now (2024)
Warren Buffett says he expects the capital good points tax charge can be going larger sooner or later because the U.S. tackles its deficit. Whereas Berkshire usually does not thoughts paying taxes, shareholders might admire that some Apple shares have been offered on the present 21% charge, earlier than tax chew will get deeper.
BECKY QUICK: “Have you ever or your funding managers’ views of the economics of Apple’s enterprise or its attractiveness as an funding modified since Berkshire first invested in 2016?”
WARREN BUFFETT: No, I’d — the — however we now have offered shares. And I’d say that on the finish of the yr, I’d assume it extraordinarily doubtless that Apple is the biggest widespread inventory holding we now have.
Now … one factor that will shock you, however we — nearly all people I do know pays much more consideration to not paying taxes than I believe they need to.
We do not thoughts paying taxes at Berkshire. And we’re paying a 21% federal charge on the good points we’re taking in Apple.
And that charge was 35 % not that way back, and it has been 52 % prior to now once I’ve been working.
It — the federal government owns — the federal authorities — owns part of the earnings of the enterprise we make. They do not personal the belongings, however they personal a proportion of the earnings.
And so they can change that proportion any yr. And the proportion that they’ve decreed presently is 21 %.
And I’d say with the current fiscal insurance policies, I believe that one thing has to present. And I believe that larger taxes are fairly doubtless.
And if the federal government needs to take a larger share of your earnings, or mine, or Berkshire’s, they will do it.
And so they might resolve that sometime they do not need the fiscal deficit to be this massive as a result of that has some vital penalties, and so they might not need to lower spending so much. And so they might resolve they will take a bigger proportion of what we earn. And we’ll pay it.
And we all the time hope at Berkshire to pay substantial federal earnings taxes. We predict it is applicable that an organization — a rustic that is been as beneficiant to our homeowners …
It does not hassle me within the least to jot down that verify.
And I’d actually hope with all that America’s accomplished for all of you, that it should not hassle you that we do it.
And if I am doing it at 21 % this yr, and we’re doing it at so much larger proportion afterward, I do not assume you will truly thoughts the truth that we offered somewhat Apple this yr.
BERKSHIRE STOCK WATCH
BERKSHIRE’S TOP EQUITY HOLDINGS – Oct. 24, 2025
Berkshire’s high holdings of disclosed publicly traded shares within the U.S., Japan, and Hong Kong, by market worth, based mostly on at this time’s closing costs.
Holdings are as of June 30, 2025 as reported in Berkshire Hathaway’s 13F submitting on August 14, 2025, aside from:
The complete checklist of holdings and present market values is accessible from CNBC.com’s Berkshire Hathaway Portfolio Tracker.
Because of a spreadsheet method error, the pct. of portfolio figures have been incorrect for an embarrassingly massive variety of weeks. The issue is now fastened.
QUESTIONS OR COMMENTS
Please ship any questions or feedback concerning the e-newsletter to me at alex.crippen@nbcuni.com. (Sorry, however we do not ahead questions or feedback to Buffett himself.)
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Additionally, Buffett’s annual letters to shareholders are extremely beneficial studying. There are collected right here on Berkshire’s web site.
— Alex Crippen, Editor, Warren Buffett Watch
