Warren Buffett has significantly reduced his stake in Apple Inc., generating a record-breaking $97 billion in gains for Berkshire Hathaway Inc. The move comes as the company’s cash levels have reached an all-time high of $325 billion, accounting for 28% of its asset value.
Buffett’s decision to cut his position in Apple and other stocks has left investors speculating about the reasons behind the sale. Some analysts believe that Buffett is sticking to his principles by recognizing Apple’s relatively high price-to-earnings ratio compared to its potential earnings growth. Others suggest that he may be preparing for a potential crisis or anticipating a change in management, hence the need to accumulate cash.
The move is notable as Berkshire Hathaway has reduced its buying of other stocks this year, acquiring equities worth just $5.8 billion through the end of September. This is overshadowed by the $133.2 billion of stock sales carried out by Berkshire in the same period.
Analysts point out that Buffett’s decision may be related to the impending management transition at Berkshire Hathaway. The company has been seeking capital for its operations, with Intel recently raising tens of billions of dollars to fund its business.
Source: https://www.benzinga.com/24/11/41867250/warren-buffetts-apple-stake-reduction-spurs-97b-cash-surge-analysts-speculate-this-could-be-the-reason-behind-berkshire-hathaways-massive-cash-pile