Buffett Trims Apple, Paramount Holdings, Cites Taxes and Uncertainty

According to the latest information provided, Warren Buffett sold a significant portion of Berkshire Hathaway’s Apple and Paramount Global investments in the first quarter of 2022. The reasons behind these sales include paying taxes on capital gains, learning more about how people value their leisure time, and potentially realizing that Paramount doesn’t have the assets needed for a successful entertainment company. Buffett also acknowledged that he may have made a mistake in selling Apple shares in 2019 and 2020, but he decided to take the tax hit now because the taxes might be higher in the future. However, Apple remains Berkshire Hathaway’s largest equity position, and Buffett stated that it’s “extremely likely” Apple will remain the largest holding in the portfolio at the end of the year. Additionally, Buffett purchased $2.7 billion worth of stocks during the quarter, primarily Liberty SiriusXM tracking stocks and Occidental Petroleum. Berkshire Hathaway also added over $21 billion in cash and short-term Treasuries to its balance sheet during this time. Buffett expressed a preference for discretionary share repurchases over dividends as a means of returning capital to shareholders. Finally, Buffett hinted that the total cash and equivalents position could exceed $200 billion this quarter. Investors interested in learning more about investing strategies and stock recommendations should consider subscribing to The Motley Fool’s Stock Advisor service. The service has produced impressive returns since 2002 and currently recommends ten stocks that could generate significant returns in the coming years.