Warren Buffett's Berkshire Hathaway cuts Apple stake by nearly 50%

Warren Buffet Apple stake: Warren Buffett’s Berkshire Hathaway has made a surprising move by selling nearly half of its shares in tech giant Apple. According to the company’s latest earnings filing, the value of Berkshire’s holdings in Apple dropped to $84.2 billion by the end of the second quarter of 2024, signaling a significant reduction in its investment.

Despite this substantial sell-off, Apple remains the largest holding in Berkshire's portfolio, underscoring the company's continued faith in the tech behemoth. The decision to sell off such a large portion of Apple stock comes after a strong second quarter for Apple, which saw its shares surge by 23 per cent, setting new records. This rally was largely driven by investor excitement over Apple’s growing focus on artificial intelligence, a sector that has become a major driver of stock prices in the tech industry.

During Berkshire Hathaway’s annual meeting in May, Buffett hinted that the sale was partially motivated by tax considerations. He suggested that reducing Apple's position could be beneficial for Berkshire shareholders, especially if capital gains taxes were to increase in the future. This strategic move aligns with Buffett's long-standing reputation for making calculated decisions that prioritize long-term shareholder value.

Apple has been a cornerstone of Berkshire’s investment strategy, at one point representing half of the conglomerate’s entire equity portfolio. The stock’s performance has been a significant contributor to Berkshire’s overall market success, making this recent sell-off all the more notable.
In addition to trimming its Apple holdings, Berkshire Hathaway has also been reducing its positions in other major investments. Notably, the firm has started to cut its stake in Bank of America, which is its second-largest investment after Apple.

This move by Buffett's investment firm is likely to spark discussions among investors and analysts, as it reflects a potential shift in Berkshire's investment strategy, particularly in its approach to tech stocks. As the market continues to evolve, Berkshire Hathaway's actions will be closely watched for indications of broader trends in the investment landscape.