Buffett's Berkshire Hathaway cuts Apple stake to $70bn
- Berkshire Hathaway has significantly reduced its stake in Apple to $69.9 billion.
- This reduction involved shedding approximately 100 million shares, a quarter of its total holding.
- The selling spree indicates Buffett's shift towards securing cash reserves through short-term Treasury bills.
In the third quarter of 2024, Warren Buffett's Berkshire Hathaway disclosed a substantial reduction in its investment in Apple Inc., bringing its stake down to $69.9 billion. This change involved a significant sell-off of around 100 million shares, representing about a quarter of Berkshire's holdings in the tech company. This sale is part of a larger trend observed over the past year, where Buffett has divested nearly two-thirds of his initial investment in Apple, which once peaked at $178 billion. This selling spree is not limited to Apple alone; Buffett's company has adopted a broader strategy of offloading significant parts of its stock portfolio during a period of economic uncertainty. The decision to reduce holdings in major tech companies reflects a shift in investment philosophy, perhaps indicating a more cautious approach as the US stock market faces numerous challenges. Buffett's actions have led to a record increase in cash reserves for Berkshire Hathaway, as the proceeds from these sales were reallocated towards short-term Treasury bills. This shows that Buffett is favoring the security of cash and government bonds over investing in volatile tech stocks. As such, this move may signal a re-evaluation of risk versus reward in the current economic climate.