Warren Buffett
Gerald Miller | CNBC
Warren Buffett sold another chunk of his stock apple Equity, Downsizing Berkshire HathawayMaintained the largest holdings for four consecutive quarters.
The Omaha-based conglomerate held $69.9 billion worth of Apple stock at the end of September, according to its third-quarter earnings report released Saturday morning. This means Buffett sold about a quarter of his shares, leaving about 300 million shares remaining. Overall, the stock is down 67.2% from the end of last year’s third quarter.
The Oracle of Omaha began reducing his stake in the iPhone maker in the fourth quarter of 2023 and stepped up his selling efforts in the second quarter, when he unexpectedly Pour nearly half of the bet.
Apple, year to date
It’s unclear exactly what prompted the ongoing selloff in shares Berkshire first bought eight years ago. Analysts and shareholders speculate this is due to high valuations and portfolio management that reduces concentration. Berkshire Hathaway’s holdings of Apple were once so large that they accounted for half of its stock portfolio.
In May, at Berkshire Hathaway’s annual meeting, Buffett suggested that the sell-off was for tax reasons, as he speculated that the U.S. government may raise capital gains taxes in the future to curb rising fiscal deficits. However, the size of the sale has led many to believe it is more than just a tax-saving move.
Berkshire began buying the stock in 2016 under the influence of Buffett’s investment lieutenants Ted Weschler and Todd Combs. Before joining Apple, Buffett had avoided technology companies for most of his career, saying they were outside his sphere of competence.
The legendary investor fell in love with Apple’s loyal customer base and the stickiness of the iPhone. Over the years, he raised his Apple holdings to Berkshire’s largest, and was even dubbed a tech giant at one point The second most important business After his cluster of insurance companies.
Amid the wave of heavy selling, Berkshire’s cash reserves reached $325.2 billion in the third quarter, a record high for the group. The company completely suspended buybacks during the quarter.
Apple shares are up 16% this year, lagging the S&P 500’s 20% gain.
