Berkshire Hathaway has been reducing its investment in Apple for the third straight quarter, with Warren Buffett divesting approximately 25% of his company’s stake in the tech giant. By late September, Berkshire’s holdings in Apple stock totaled about $69.9 billion, a decrease from around $84.2 billion at the close of the previous quarter.
Buffett’s company has steadily decreased their stakes in Apple and various other companies throughout 2024. They sold 13% of their Apple holdings during the first quarter of 2024 and approximately 50% in the second quarter. This latest reduction of around 25% leaves them with roughly 300 million Apple shares, down from 400 million at the conclusion of Q2.
At the end of 2023, Berkshire Hathaway had around 905 million Apple shares, indicating their position has diminished to about a third of its original size. Based on the market close on November 1st, those 905 million Apple shares would be valued at approximately $201.7 billion.
In parallel, Berkshire Hathaway is amassing a record cash reserve. By the end of Q2, this cash reserve was around $277 billion, and it has now increased to about $325 billion.
Warren Buffett previously mentioned that Apple would continue to be their largest holding, unless “something dramatic occurs that substantially alters capital allocation.” He also indicated in Q1 that the decision to cut Apple shares was primarily tax-driven, though ongoing sales appear to suggest a different narrative.
Currently, Apple stock is nearing an all-time high, which may indicate that the selling could be a strategy for risk management from the company.
