International News 07/08
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Berkshire Hathaway's cash soars to US$277 billion after selling 55% of its Apple portfolio.
Berkshire Hathaway, the conglomerate owned by Warren Buffett, has seen a notable increase in its cash holdings, with cash reserves reaching approximately $277 billion. Despite posting a record-breaking quarterly operating profit, Berkshire sold the majority of its stake in Apple, with the sale of approximately 390 million shares in the second quarter. This follows the sale of 115 million shares in the first quarter. However, Berkshire still retains ownership of approximately 400 million shares in Apple. The increase in cash was primarily driven by the sale of $75.5 billion worth of net shares, marking the seventh consecutive quarter where Berkshire sold more shares than it purchased. Second-quarter profit from Berkshire's various businesses increased by 15% to $11.6 billion, with almost half of the profit generated by the underwriting and insurance business. Despite a 15% decline in Berkshire's net income due to rising stock prices in both periods, Buffett remains optimistic and encourages shareholders.
Nintendo Only Sold 2.1 Million Switch Units in the April - June Quarter
Nintendo, the Japanese gaming company, has reported a decline in sales and profits for the April to June quarter. The company sold only 2.1 million units of its Switch console during the quarter, which is significantly below expectations. Notwithstanding the aforementioned decline in sales, Nintendo has affirmed its full-year sales forecast of 13.5 million units. Operating profit also declined by 71% to 54.5 billion yen, below analysts' estimates. The company's mobile phone and intellectual property division also performed poorly, with revenues dropping by 54%. Nintendo has announced plans to release a successor device within the financial year. Furthermore, the company has few game titles announced for this year, although upcoming releases include The Legend of Zelda: Echoes of Wisdom and Mario & Luigi: Brothership. The gaming industry is currently facing challenges such as rising costs and weak pricing power.