Apple Shares Fall After Buffett's Company Cuts Stake

Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has significantly reduced his stake in Apple Inc., leading to a sharp decline in the tech giant's stock. In a recent earnings filing, Berkshire revealed that its Apple holdings were valued at $84.2 billion at the end of the second quarter, indicating a reduction of over 49%. Following this announcement, Apple shares plummeted by 4.8% on Monday, with earlier losses reaching as high as 10%. This move comes amid a broader global sell-off in stock markets, fueled by fears of an impending economic slowdown. Buffett's decision to sell is part of a larger trend, as he has offloaded more than $75 billion in equities during the second quarter, raising Berkshire's cash reserves to a record $277 billion. This selling spree also included a reduction in his second-largest holding, Bank of America, which began in July. Previously, Buffett had sold 13% of his Apple stake in the first quarter, citing tax-saving strategies in anticipation of potential increases in U.S. tax rates to address a growing fiscal deficit. The scale of the recent sale suggests that tax considerations may not be the sole reason for Buffett's actions. Since Berkshire began acquiring Apple shares in 2016, the investment had grown to become the company's largest holding, at one point comprising half of its equity portfolio. Analysts speculate that the recent divestment could also reflect a strategic shift in portfolio management. Apple has not provided any comment on the situation.