Warren Buffett’s Berkshire Hathaway has reduced its Apple holdings for the fourth consecutive quarter, marking a 25% decrease from its peak value last year. The conglomerate sold approximately $36 billion worth of equities, including nearly all of its stake in Apple.
As of September, Berkshire held $69.9 billion in Apple shares, down from a peak value of $174.3 billion last December. The recent sale, combined with an even larger reduction in the second quarter, has left Berkshire’s stake at around 400 million shares.
Berkshire’s move to sell its large stake aligns with the company’s broader strategy of liquidating high-value positions, including a $9 billion reduction in Bank of America shares. This is part of Warren Buffett’s efforts to conserve capital and maintain liquidity amid economic uncertainty.
Analysts speculate that Buffett’s recent sales may be due to premium valuations on Apple’s stock, which is trading at 31 times its projected earnings. However, the billionaire investor hinted earlier this year that he may be securing profits ahead of potential capital gains tax hikes.
This move marks a shift in Berkshire’s stance toward tech stocks, as Warren Buffett has historically viewed Apple as one of his most important assets. Nevertheless, the reduction in stake may reflect a need for diversification within the conglomerate’s holdings.
In other news, Berkshire paused its share buybacks in Q3, following a significant decrease in repurchases earlier this year. Despite this pause, Berkshire’s Class A shares have risen 25% in 2024, outperforming the S&P 500’s 20% return. This suggests that Buffett is maintaining capital reserves amid economic uncertainties while preserving Berkshire’s long-term growth potential.
Source: https://finbold.com/what-warren-buffetts-100-billion-apple-stock-offload-is-telling-us