Warren Buffett’s Berkshire Hathaway sold its Costco stake last quarter. Here are 3 reasons why that’s extremely surprising

Warren Buffett, Charlie Munger are posing for a picture: Warren Buffett and Charlie Munger REUTERS/Rick Wilking

© REUTERS/Rick Wilking
Warren Buffett and Charlie Munger REUTERS/Rick Wilking

  • Warren Buffett’s Berkshire Hathaway sold its Costco position after investing more than 20 years ago, a filing revealed this week.
  • The billionaire investor’s company grew its stake in the big-box retailer from 355,000 shares worth $32 million in 1999, to 4.3 million shares worth $1.3 billion in June of this year.
  • The sale is a shock because Buffett famously invests for the long term, two of Berkshire’s directors sit on Costco’s board, and both Buffett and his business partner, Charlie Munger, have repeatedly praised the retailer.
  • “If once or twice in a lifetime you’re associated with such a business, you’re a very lucky person,” Munger said about Costco in 2011.
  • Visit Business Insider’s homepage for more stories.

Warren Buffett’s Berkshire Hathaway revealed this week that it dumped its stake in Costco last quarter, exiting an investment it made more than

Read More

3 Top Warren Buffett Tech Stocks to Buy Right Now

Warren Buffett has cultivated a reputation for being somewhat averse to tech stocks as Berkshire Hathaway‘s CEO, preferring to focus on businesses that were less complicated. But Buffett has come around to some technology stocks in recent years, and top tech investments have been among the best-performing assets in Berkshire’s portfolio. 

With that in mind, we asked three Motley Fool contributors to profile a Buffett-backed tech stock that’s worth buying right now. Read on to see why they think that StoneCo (NASDAQ:STNE), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) have what it takes to be winners. 

Warren Buffett.

Image source: Getty Images.

One of Berkshire’s hottest stocks

Keith Noonan (StoneCo): Buffett and Berkshire established a substantial position in StoneCo when the Brazilian fintech company had its initial public offering two years ago. The company’s share price has climbed roughly 170% from its $24-per-share IPO price, and the stock still offers attractive

Read More

Warren gets $1.4 million to help local cloud infrastructure providers compete against Amazon and other giants

Started as a side project by its founders, Warren is now helping regional cloud infrastructure service providers compete against Amazon, Microsoft, IBM, Google and other tech giants. Based in Tallinn, Estonia, Warren’s self-service distributed cloud platform is gaining traction in Southeast Asia, one of the world’s fastest-growing cloud service markets, and Europe. It recently closed a $1.4 million seed round led by Passion Capital, with plans to expand in South America, where it recently launched in Brazil.

Warren’s seed funding also included participation from Lemonade Stand and angel investors like former Nokia vice president Paul Melin and Marek Kiisa, co-founder of funds Superangel and NordicNinja.

The leading global cloud providers are aggressively expanding their international businesses by growing their marketing teams and data centers around the world (for example, over the past few months, Microsoft has launched a new data center region in Austria, expanded in Brazil and announced it

Read More

Warren and Other Democrats Push ‘Fundamental’ Reform of Capitalism

On Nov. 17 and 18, DealBook is holding our first Online Summit. Join us as we welcome the most consequential newsmakers in business, policy and culture to explore the pivotal questions of the moment — and the future. Watch from anywhere in the world, free of charge. Register now.

Just days before Election Day, four Democratic senators — Tammy Baldwin, Tom Carper, Mark Warner and Elizabeth Warren — are banding together to “fundamentally reform” capitalism. DealBook’s Lauren Hirsch got a first look at their working group, which will be announced today. Above all, it suggests growing Democratic unity around pushing corporate America to focus less on shareholders and short-term profits. And it signals an early priority for lawmakers if their party performs as well as the polls imply.

Why this matters: Attention is growing on who would have Joe Biden’s ear about steering the

Read More

Warren Buffett’s Apple Spooks on 4th-Quarter iPhone Sales Decline

– By James Li

Shares of Apple Inc. (NASDAQ:AAPL), the top holding of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B), tumbled over 4% in aftermarket trading on Thursday despite reporting revenue and earnings results that topped analysts’ estimates.

For the three months ending Sept. 30, the Cupertino, California-based technology giant reported revenue of $64.7 billion and net earnings of 73 cents per share, topping Refinitiv’s estimates of $63.70 billion in revenue and 70 cents in earnings per share.

Warren Buffett's Apple Spooks on 4th-Quarter iPhone Sales Decline
Warren Buffett’s Apple Spooks on 4th-Quarter iPhone Sales Decline

These results compare with revenue of $64 billion and net earnings of $3.03 per share in the prior-year quarter. The latest quarterly earnings of 73 cents per share reflect the company’s four-for-one stock split, which took place on Aug. 31.

Company holds back December-quarter guidance as coronavirus pandemic brings uncertainty

Apple CEO Tim Cook said in the earnings release that the September-quarter

Read More