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Warren Buffett s Berkshire Hathaway Sees Profit Rise 23%—2nd Update

Provided by Dow Jones By Jenna Telesca and Geoffrey Rogow Warren Buffett s Berkshire Hathaway Inc. posted an increased fourth-quarter profit Saturday, with the billionaire investor using his annual missive to investors to explain a recent surge in stock buybacks. For the year, Berkshire bought back nearly $25 billion in shares, according to the company s earnings report. Before the last few years, Mr. Buffett had refused to buy back any Berkshire stock. In Mr. Buffett s annual letter to shareholders, he defended the larger-than-usual buybacks, saying they enhance the intrinsic value for shareholders but still leave Berkshire ample funds for any opportunities. He was less than complimentary of other chief executives buying back stock.

Why did Warren Buffett sell Apple shares?

Buffett and Berkshire Hathaway certainly are not giving up on Apple. The company s stock will continue to be Berkshire Hathaway s biggest equity investment. Yet, the $1 billion in profits that Buffet and company took will help pay for new stakes Verizon, Marsh & McLennan and Chevron purchased confidentially in the third quarter of 2020 for around $8 billion. Berkshire Hathaway may not want any longer to keep more than 40% of its equity holdings in Apple stock. And it s not because Buffett and his top investment managers think the stock is going to sink. Selling off small pieces of its stake in Apple gives Berkshire Hathaway funds to invest in other equities, although the firm still concentrates on investments in established, mostly non-high-tech firms. Buffett also has trimmed investments in some banks, including long-time favorite Wells Fargo, and beefed up investments in health care stocks like Bristol-Myers Squibb and Merck, while selling his remaining stake in Pfizer.

Buffett s Berkshire snaps up record US$24 7B of own stock

Buffett s Berkshire snaps up record US$24 7B of own stock
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