Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 1
" Barron’s estimates that Berkshire may have sold about 35 million shares of Apple—in line with a projection that we made in an article on the company’s earnings on Sunday. It is also possible that Berkshire sold between 50 million and 100 million shares of Bank of America from its $300 billion equity portfolio."
The uncertainty likely will be resolved on Nov. 14 when Berkshire releases its 13-F report detailing its U.S.-listed equity holdings.
Here’s what we know now. Berkshire sold $12.4 billion of stocks in the period and realized $10.4 billion of pretax gains. That meant that whatever was sold had large embedded gains.
Berkshire is sitting on huge gains in its Apple holdings and likely has large gains in Bank of America as well, based on information in CEO Warren Buffett’s shareholder letter from 2021, where Berkshire disclosed the cost basis of its 15 largest stockholdings.
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In the 10-Q, Berkshire also reported that its cost basis in consumer stocks fell by $1.2 billion. That could mean a sale of about 35 million Apple shares (which has a cost basis of $35 a share). Apple stock averaged about $230 a share in the period. That could have resulted in about $8 billion in Apple sales.
Buffett pared the Apple holding, which once totaled one billion shares, by about two thirds in 2024. Berkshire sold another 20 million shares in the second quarter and held 280 million shares on June 30 that are now worth about $75 billion. When Buffett starts cutting an equity holding, he often continues to do so over multiple quarters.
If Berkshire sold $8 billion of Apple, that would leave another $4 billion to reach the $12.4 billion of total equity sales in the third quarter. Bank of America would be a leading candidate, since Berkshire likely has big gains in that stock. Barron’s estimates that Berkshire’s cost basis is just $7 a share, and the stock averaged close to $50 a share in the third quarter."
The troll.
No. of Recommendations: 2
My first question for Buffett,
Two years ago did you consider spinning out a portion or all the apple shares to brk shareholders? Would brk shareholders have acquired brks cost basis?
Thank you, the troll.
No. of Recommendations: 2
What is "in the 1/4" supposed to mean? Why do we always have to strain to decipher what you are saying?
No. of Recommendations: 3
“ What is "in the 1/4" supposed to mean? “ A 1/4 is more than an 1/8 but less than a 1/2. Unreal.
No. of Recommendations: 12
What is "in the 1/4" supposed to mean? A 1/4 is more than an 1/8 but less than a 1/2. Unreal.
Thanks, now I understand your shorthand. And I was a math major! 😆
No offense, but you do tend to make lots of typos. Wasn't sure if you meant "10/4" for "ok," or "11/4" for the date, or some slang such as "411" for "information." You could have gone with "qtr" and been clear while typing the same number of characters.
Thanks for the condescending "Unreal," by the way. Nice touch.
No. of Recommendations: 1
" No offense, but you do tend to make lots of typos. Wasn't sure if you meant "10/4" for "ok," or "11/4" for the date, or some slang such as "411" for "information." You could have gone with "qtr" and been clear while typing the same number of characters."
Good morning, no offense taken. If you went to public school in Brooklyn NY in the 50s and 60s, they didn't teach the boys how to type, how sexist was that? I still type with one finger and IF I'm on my cell phone without my glasses on the entire internet is at risk!
To be honest several of the responses to my dividend suggestion reminds me of my previous suggestions the past 25 years.
When I suggested that Buffett begin his very generous donation plans in early 2005 rather than wait until he passed the usual suspects in brkville jumped me, of course. Buffett's generosity may lead to medical discoveries that extend his life and ours. Not to mention what the Foundations have done globally.
When I pounded the table to authorize a buyback at, material discounts to IV in 2006 near BV, not one loyal brkbista vigorously supported me, not one. That's how I knew I was right.
To be serious, several of the responses to my current suggestion that the time is right to declares a 1 $ quarterly dividend now, couldn't be more pathetic, to be kind. Let's not waste the time to make the case, again.
BTW, I'm stipulating that my typing and secretarial skills are VERY poor, and English is my only language, that's why I surrounded myself with great people during my very short working career.
There must be dozens of people hear who have been reading my posts for 25 years right here in real time. Let's go, call me out, what crazy nonsensical suggestions have I made in the past 25 years that Buffett rejected, name them. They didn't teach us how to type in Brooklyn, BUT, the streets of New York made us tuff, we don't disappear regardless of the behavior of the brk cultistas aka, the usual suspects.
Let's go kids, lay it on me, unless I'm excommunicated like the Fools board did, I'm here for your daily enjoyment!!
To Da Moon brk! btw, I still remember my fractions, aren't you impressed?
No. of Recommendations: 0
Note, hear, to help make your day, 1/2 the time.
