Warren Buffett is not too anxious of a Transaction Warfare

Sean Reid
May 7, 2018

During the traditional Q&A session at Berkshire Hathaway's annual meeting, a shareholder challenged Buffett on his refusal to pressure Berkshire subsidiaries to divest from gun-related businesses.

"They are not going to find $50 billion or $100 billion acquisitions that they can make at remotely a sensible price", ReCode quoted Buffett as saying at the company's annual meeting held at Omaha city in the U.S. state of Nebraska. The billionaire has praised Apple's decision to repurchase its own stock.

It came two days after Buffett revealed having bought 75 million additional Apple shares, and four days after Apple said it may buy back $100 billion (roughly Rs. 6.7 lakh crores) of stock.


Following the February 14 school shooting at Marjory Stoneman Douglas High School in Parkland, Florida, Buffett told CNBC: "I don't believe in imposing my views on 370,000 employees and a million shareholders". Berkshire is now Apple's third largest shareholder, behind Vanguard Group and BlackRock Inc.

Furthermore, Buffett said that he would love to see Apple go down in price so Berkshire Hathaway could further increase its ownership.

While Buffett "very much" approves of Apple repurchasing shares, he and Munger expressed scepticism that Apple could find meaningful acquisitions on which to spend cash. "If you look at Apple, I think it earns nearly twice as much as the second most profitable company in the U.S".


At the end of the first quarter of 2018, Berkshire owned $40.7 billion of Apple's shares - up from $28.2 billion at the end of 2017, The New York Times reported.

The California-based giant's market valuation, meanwhile, has surpassed the $930 billion mark.

"That is not investing", he said at the time.


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