Did Warren Buffett See This Coming?
The latest 13F filing for Buffett’s Berkshire Hathaway [BRK-B] showed that it increased its cash reserves for the 10th consecutive quarter, reaching a record $334.2bn. The fund also cut its Apple [AAPL] holdings over the course of 2024, most recently shedding 25% of its shares in Q3 2024. AAPL stock is currently in the midst of a historic selloff, having dropped some 23% since last week’s tariffs news.
Microsoft is Back on Top
Having fallen just 7% over the same period, Microsoft [MSFT] is once again the world’s most valuable listed company, Seeking Alpha reported. Apple’s exposure to China, India and Vietnam — now hit with higher duties — may have spooked investors. By contrast, Jefferies analysts recently said Microsoft is “more insulated” from macro pressures and remains “the safest large-cap investment option”.
Could iPhones Actually Be Made in America?
Dan Ives of Wedbush does not think so, writing that the idea is “a non-starter … Price points would move up so dramatically it’s hard to comprehend, and the near-term margin impact on Apple’s gross margins during this tariff war could be mind-boggling,” Seeking Alpha reported. Even more succinctly, Needham analyst Laura Martin told CNBC: “I don’t think that’s a thing.”
Trump’s Next Target: Pharma
Global drugmaker stocks, including US firms like Pfizer [PFE] and Eli Lilly [LLY], dropped Wednesday as US President Donald Trump doubled down on plans for a proposed tariff on pharmaceutical imports. Companies and analysts have expressed concern that a tariff could threaten the sector’s global supply chain. OPTO recently examined three stocks in the broader pharma theme that could come out on top in 2025.
Starlink Embattled in Canada
Elon Musk’s Starlink is in a spat with Bell [BCE] over Canadian subsidies for rural internet. Bell claims Starlink’s flat-rate pricing proves it does not need help to serve remote areas, according to the Financial Times, while Starlink counters that blocking support would be anti-competitive. The province of Ontario recently said it would cancel a $100m Starlink contract, as the country experiences a growing wave of anti-US sentiment.
Tesla’s Pain is Volkswagen’s Gain
Volkswagen [VWAGY] saw Q1 global deliveries rise 1.4% to 2.13 million units, driven by a 59% surge in electric vehicle sales. European and US growth offset a 7.1% decline in China, Bloomberg reported. The company appears to be gaining market share from Tesla [TSLA], as backlash grows over Elon Musk’s alignment with Donald Trump and support for far-right groups in Europe, among them Germany’s AfD party.
IBM Beats S&P 500
Q1 2025 has proven painful for a number of tech companies — but not for legacy player IBM [IBM], which remains well ahead of the S&P 500 in the year to date. Analysts point to stellar Q4 2024 results and a slow but steady rollout of the firm’s artificial intelligence plans, signs the stock could continue to perform amid a wider market downturn. To learn more, read OPTO’s exploration of the investment case for IBM and fellow legacy tech player Dell [DELL].
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