Berkshire Hathaway Reduces Apple Stake by Almost Half
- Berkshire Hathaway significantly reduced its stake in Apple by almost 50%.
- This decision was announced following Berkshire's second quarter earnings report.
- Buffett's move signals a notable shift in one of the most influential tech investments.
Warren Buffett’s Berkshire Hathaway has significantly reduced its investment in Apple, cutting its stake by nearly 50%, as revealed in the company’s second quarter earnings report released on Saturday. The report indicates that Berkshire’s holdings in Apple are now valued at $84.2 billion, down from 790 million shares to 400 million shares. This move is particularly striking given Buffett's reputation for long-term stock retention. Apple, which boasts a market capitalization exceeding $3.3 trillion, did not provide a comment regarding the selloff. In the last quarter of 2023, Berkshire Hathaway divested 10 million shares of Apple, equating to about 1% of its total holdings. Additionally, in the first quarter of 2024, the conglomerate further reduced its stake by 13%. This trend of downsizing is not limited to Apple; Berkshire also decreased its investment in Bank of America, its second-largest position, to $41.1 billion. Despite these reductions, Berkshire Hathaway reported a record cash reserve of nearly $277 billion for the second quarter, a significant increase from approximately $189 billion in cash and equivalents reported in the first quarter. The company also sold off $75.5 billion in stock during the same period. The earnings report highlights that around 72% of Berkshire’s total fair value is concentrated in five major companies, including American Express, Coca-Cola, and Chevron, alongside Apple and Bank of America.