Warren Buffet’s Berkshire Hathaway Slashes Apple Stake
This decision follows an earlier reduction of 13 per cent in Berkshire’s Apple stake this year
Business tycoon Warren Buffett’s Berkshire Hathaway has reduced its stake in Apple, cutting its holdings by around half to USD 84.2 billion, as revealed in a recent SEC filing.
This move is a big shift for Buffett, who had largely avoided technology investments until he began purchasing Apple stock in 2016. Despite this reduction, Apple remains the largest stock holding in Berkshire’s portfolio.
This decision follows an earlier reduction of 13 per cent in Berkshire’s Apple stake this year, with Buffett citing tax considerations as a reason for selling "a little Apple." The Financial Times noted that the sale yielded substantial profits for Berkshire, reflecting the lucrative returns on the investment.
The timing of this sale coincides with Apple’s third-quarter earnings, which mentioned a decline in global iPhone sales for the second consecutive quarter. This drop is due to increasing competition from Chinese companies like Huawei. However, a bright spot in the earnings report was the growth in iPad sales.
Apple CEO Tim Cook mentioned that the company is reallocating resources to prepare for the launch of Apple Intelligence, a new suite of AI features set to debut in the fall.
Berkshire Hathaway’s broader strategy of selling off significant holdings is also evident in its recent sale of USD 3.8 billion worth of Bank of America shares. This series of divestments might indicate a strategic rebalancing of Buffett’s portfolio rather than a loss of faith in these key investments.
