According to filings published today, Warren Buffett’s Berkshire Hathaway sold nearly 50% of its stake in Apple during the second quarter of 2024, after the firm already trimmed their stake by around 13% in the first quarter. Berkshire Hathaway has been rapidly building up its cash reserves in recent months, trimming positions in some of its major holdings.
Top comment by Koron
Totally expected!
Has nothing to do with uncertainty about .
For context (Source Neil Cybart & @Neil Caulfield
Based on Berkshire's 10-Q, Warren Buffett cut Berkshire's remaining AAPL stake by 50% last quarter. The stake now valued at $84B (30% o portfolio). At its peak, the stake was about 50% the portfolio.
Source Neil Cybart & @Neil Caulfield :
The tweet below is certainly one way of looking at the Berkshire/AAPL issue. (I'm not going to comment about his Apple valuation / growth comments.) The other way of looking at it is that as AAPL shares continue to rise, Berkshire has to eventually reduce its AAPL stake or BRK shares basically become an AAPL proxy. That would remove much of the reason to own BRK shares.
When Berkshire Hathaway initially sold 13% of its stake in Apple in Q1 of 2024, they suggested that the move was primarily for tax purposes on an earnings call. Warren Buffett also reassured investors that Apple would remain their biggest holding, unless “something dramatic happens that really changes capital allocation”. They also trimmed their position by around 1% in Q4 of 2023.
However, this much larger sell seems to suggest some form of uncertainty around Apple and the overall market. Berkshire Hathaway’s cash reserves have now reached a total of $277 billion, up $88 billion from the previous quarter. At one point, Berkshire Hathaway’s stake in AAPL was around half of its entire portfolio.
Before this most recent sell, the firm held around 789 million shares in AAPL. They now hold around 400 million. Their stake in Apple is now around 2.6% of the whole company, being worth $84.2 billion currently, down from $135.4 billion last quarter. At the end of 2023, the firm held 905 million shares in Apple, which would be worth $198.9 billion at today’s prices.
At Berkshire Hathaway’s annual meeting back in May, Apple CEO Tim Cook commented on the firm shortly after their initial sale – and still stated that “it’s a privilege to have them as a shareholder”.
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