Berkshire Hathaway (BRK-B)
- Berkshire Hathaway stock futures ticked lower ahead of the opening bell in the US on Monday, after it reported quarterly earnings over the weekend.
- The report revealed the Warren Buffet-led fund had sold about 100 million, or 25%, of its Apple (AAPL) shares over the last few months, taking its total to about 300 million.
- Berkshire has now sold more than 600 million of the iPhone maker’s shares in 2024, though it still held $69.9bn of Apple shares — its largest stock holding.
A Closer Look at Berkshire’s Earnings
- Shares in Berkshire Hathaway are up 26% year-to-date, beating the S&P 500 (^GSPC) 20% rise in that time.
- Berkshire’s cash pile grew to $325bn, up from a record $272bn (£208bn) at the end of June.
- Operating profit fell by 6% to $10.09bn.
- Net income totalled $26.25bn, compared with a loss of $12.77bn a year earlier.
Berkshire’s Shift in Investment Strategy
- AJ Bell’s Russ Mould, Danni Hewson and Dan Coatsworth point out that Berkshire Hathaway has actually been whittling down its exposure to stocks and US government bonds, known as Treasuries, and adding to its cash pile.
- The company has been selling off some of its most valuable holdings, including Apple shares, in favor of increasing its cash reserves.
Other Market News
- Ryanair (RYA.IR): Ryanair stock wobbled on Monday in early trade, dipping before heading slightly higher, as its CEO Michael O’Leary lashed out against new policies rolled out in the Labour government’s first budget.
- The company will opt to cut flights in and out of UK airports by 10%, a sum that could equate to 5 million fewer passenger journeys.
Burberry (BRBY.L)
- Burberry stock jumped as much as 7% on Monday morning in London, trading higher following rumours the luxury brand could be in line for a takeover from Italian brand Moncler (MONC.MI).
- Fashion trade publication Miss Tweed reported LVMH (MC.PA) head Bernard Arnault is looking to clinch a deal with the retailer.
- The report cites several industry sources.
Viking Therapeutics (VKTX)
- Viking Therapeutics stock surged in premarket trade on Monday after it presented its own promising version of Ozempic.
- New data from the company’s phase one multiple ascending dose (MAD) clinical trial of an oral tablet known as VK2735 showed promising results, according to a release.
Takeaways and Analysis
- Berkshire Hathaway’s quarterly earnings report revealed a significant shift in its investment strategy, with the company selling off some of its most valuable holdings and adding to its cash reserves.
- The company’s decision to sell off Apple shares could be seen as a vote of confidence in the tech giant’s future prospects.
- Ryanair’s CEO lashed out against new policies rolled out in the Labour government’s first budget, warning that they would damage UK growth prospects.
- Burberry stock surged on Monday morning following rumors of a potential takeover from Italian brand Moncler.
- Viking Therapeutics presented promising results from its phase one clinical trial of an oral tablet known as VK2735.
Conclusion
Berkshire Hathaway’s quarterly earnings report revealed significant shifts in the company’s investment strategy, with a focus on increasing cash reserves and reducing exposure to stocks and US government bonds. The company’s decision to sell off Apple shares could be seen as a vote of confidence in the tech giant’s future prospects. Meanwhile, Ryanair’s CEO lashed out against new policies rolled out in the Labour government’s first budget, warning that they would damage UK growth prospects. Burberry stock surged on Monday morning following rumors of a potential takeover from Italian brand Moncler.
