Tag Archives: APRE

Buffett’s Berkshire discloses $4.1 bln TSMC stake

Nov 14 (Reuters) – Berkshire Hathaway Inc (BRKa.N) said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing (2330.TW), , a rare significant foray into the technology sector by billionaire Warren Buffett’s conglomerate.

The news sent shares in TSMC up more than 6% in Taiwan on Tuesday, as it boosted investor sentiment for the world’s largest contract chipmaker, which saw its shares hit a two-year low last month due to a sharp slowdown in global chip demand.

In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million American depositary shares of TSMC.

Berkshire also disclosed new stakes of $297 million in building materials company Louisiana-Pacific Corp (LPX.N) and $13 million in Jefferies Financial Group Inc (JEF.N). It exited an investment in Store Capital Corp (STOR.N), a real estate company that agreed in September to be taken private.

The filing did not specify whether Buffett or his portfolio managers Todd Combs and Ted Weschler made specific purchases and sales. Investors often try to piggy back on what Berkshire buys. Larger investments are normally Buffett’s.

While Berkshire does not normally make big technology bets, it often prefers companies it perceives to have competitive advantages, often through their size.

TSMC, which makes chips for the likes of Apple Inc (AAPL.O), Qulacomm (QCOM.O) and Nvidia Corp (NVDA.O), posted an 80% jump in quarterly profit last month, but struck a more cautious note than usual on upcoming demand.

“I suspect Berkshire has a belief that the world cannot do without the products manufactured by Taiwan Semi,” said Tom Russo, a partner at Gardner, Russo & Quinn in Lancaster, Pennsylvania, which owns Berkshire shares.

“Only a small number of companies that can amass the capital to deliver semiconductors, which are increasingly central to people’s lives,” he added.

Berkshire has had mixed success in technology.

Its more than six-year wager during the last decade in IBM Corp (IBM.N) did not pan out, but Berkshire is sitting on huge unrealized gains on its $126.5 billion stake in Apple, which Buffett views more as a consumer products company.

Apple is by far the largest investment in Berkshire’s $306.2 billion equity portfolio.

Berkshire disclosed the TSMC stake about 2-1/2 months after it began reducing a decade-old, multi-billion dollar stake in BYD Co (002594.SZ), China’s largest electric car company.

In the third quarter, Berkshire added to its stakes in Chevron Corp (CVX.N), Occidental Petroleum Corp (OXY.N), Celanese Corp (CE.N), Paramount Global (PARA.O) and RH (RH.N).

It also sold shares of Activision Blizzard Inc (ATVI.O), Bank of New York Mellon Corp (BK.N), General Motors Co (GM.N), Kroger Co (KR.N) and US Bancorp (USB.N).

Buffett, 92, has run Berkshire since 1965. The Omaha, Nebraska-based company also owns dozens of businesses such as the BNSF railroad, the Geico auto insurer, several energy and industrial companies, Fruit of the Loom and Dairy Queen.

Reporting by Jonathan Stempel in New York; Editing by David Gregorio and Bradley Perrett

Our Standards: The Thomson Reuters Trust Principles.

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Gold rush draws hundreds of dredging rafts to Amazon tributary

AUTAZES, Brazil, Nov 24 (Reuters) – Hundreds of dredging rafts operated by illegal miners have gathered in a gold rush on the Madeira River, a major tributary of the Amazon, floating hundreds of miles as state and federal authorities dispute who is responsible for stopping them.

The flotilla of rafts equipped with pumps are moored together in lines that nearly stretch across the vast Madeira, and a Reuters witness spotted plumes of exhaust indicating they are vacuuming the riverbed for gold.

“We counted no less than 300 rafts. They’ve been there at least two weeks and the government has done nothing,” said Greenpeace Brazil activist Danicley Aguiar.

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The gold rush, triggered by rumors that someone had found gold there, began as world leaders gathered for a United Nations climate conference in Glasgow, where Brazil vowed it had stepped up protection of the Amazon rainforest. read more

However, far-right President Jair Bolsonaro has weakened environmental enforcement since taking office in 2019, turning a blind eye to invasions of protected public and indigenous lands by illegal loggers, cattle ranchers and wildcat gold miners.

The Madeira flows some 2,000 miles (3,300 kilometers) from its source in Bolivia through the rainforest in Brazil and into the Amazon River.

An aerial view shows dredging rafts operated by illegal miners who have gathered in a gold rush on the Madeira, a major tributary of the Amazon river, in Autazes, Amazonas state, Brazil November 23, 2021. REUTERS/Bruno Kelly

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The dredging rafts have floated downriver from the Humaita area, where there has been a surge in illegal gold mining, and were last seen some 400 miles (650 km) away in Autazes, a municipal district southeast of Manaus.

A spokesperson for Brazil’s environmental protection agency Ibama said the illegal dredging on the Madeira river was the responsibility not of the federal government but of Amazonas state and its environmental agency IPAAM.

The IPAAM said in a statement that the rafts anchored on the river were under federal jurisdiction, so the National Mining Agency (ANM) was responsible for licensing and it was up to the federal police to see if any crimes had been committed. River traffic and pollution was the Navy’s area, IPAAM said.

The ANM said it did not fall under their purview as they only oversaw legal mining, while criminal activity was a matter for the police and courts.

The Federal police said it was looking at the best way to deal with the problem and prevent environmental damage.

“It’s a free-for-all. None of the authorities are doing anything to stop illegal mining, which has become a epidemic in the Amazon,” Aguiar of Greenpeace Brazil said.

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Reporting by Bruno Kelly
Writing by Anthony Boadle
Editing by Brad Haynes and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

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Guinea military consolidates takeover, opposition leader signals openness to transition

CONAKRY, Sept 7 (Reuters) – Guinea’s main opposition leader said on Tuesday he was open to participating in a transition following a military coup over the weekend, as the soldiers who seized power consolidated their takeover.

West African countries have threatened sanctions following the overthrow of President Alpha Conde, who was serving a third term after altering the constitution to permit it.

His opponents said the change was illegal and frustration boiled over into deadly protests last year. Eighty political prisoners detained by Conde’s government, including a number who had campaigned against his third term, were released on Tuesday evening, said Hamidou Barry of the Guinean Organisation of Human Rights.

Regional leaders will meet to discuss Guinea on Wednesday – not Thursday, as suggested in a previous staff memo.

Coup leader Mamady Doumbouya, a former officer in the French Foreign Legion, has promised a transitional government of national unity and a “new era for governance and economic development”. But he has not yet explained exactly what this will entail, or given a timeframe.

Guinea’s main opposition leader, Cellou Dalein Diallo, told Reuters on Tuesday he had not yet been consulted about the transition but was ready to participate.

“We would send representatives, why not, to participate in the process to bring the country back to constitutional order,” said Diallo, a former prime minister who finished runner-up to Conde in three successive elections, most recently last October.

Sunday’s uprising, in which Conde and other top politicians were detained or barred from travelling, is the third since April in West and Central Africa, raising concerns about a slide back to military rule in a region that had made strides towards multi-party democracy since the 1990s.

Conakry was calm for a second day after the putsch, with some military checkpoints removed. Traffic was normal on Tuesday in the capital’s administrative centre, the Kaloum peninsula.

Special forces members take position during an uprising that led to the toppling of president Alpha Conde in Kaloum neighbourhood of Conakry, Guinea September 5, 2021. REUTERS/Saliou Samb/File Photo

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Moving to consolidate their power, the soldiers that led the coup have installed army officers at the top of Guinea’s eight regions and various administrative districts.

BAUXITE

The coup raised concerns about supplies of bauxite, the main aluminium ore, from Guinea, a leading producer.

The benchmark aluminium contract on the London Metal Exchange remained near a 10-year high on Monday.

However, mines have not reported any disruption. State-run Chinese aluminium producer Chalco’s (601600.SS), bauxite project in Guinea said it was operating normally.

The Australian-listed bauxite and gold exploration firms Lindian Resources (LIN.AX) and Polymetals Resources (POL.AX) also said on Tuesday that their activities were unaffected.

The Kremlin said it was closely following the political situation and that it hoped Russian business interests, which include three major bauxite mines and one alumina refinery, would not suffer.

During his decade in power, Conde steered Guinea through economic growth, but unemployment remained high.

Surveys by Afrobarometer suggest the majority of Guineans think the level of corruption has increased, while dissatisfaction with the economy and personal living conditions has also risen.

Diallo said corruption became endemic under Conde.

“An elite that enriched themselves in an insolent way, while poverty was rising and the country’s infrastructure was crumbling. There was also a general malaise in the country,” he said.

Additional reporting by Hereward Holland and Bate Felix
Editing by Kevin Liffey and Grant McCool

Our Standards: The Thomson Reuters Trust Principles.

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