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

What is the story

Warren Buffett’s Berkshire Hathaway cut its stake in Apple by nearly 50% in a second-quarter sell-off.

The value of Apple shares held by the company at the end of the quarter was $84.2 billion, which means a decrease from 790 million shares to 400 million.

The move pushed the company’s cash reserves to a record $276.9 billion. The conglomerate sold a net $75.5 billion in stock during the period.

Operating profit rises amid stock sell-off

Berkshire Hathaway reported an increase in operating profit to $11.6 billion, up from $10 billion in the same period a year earlier.

Despite accumulating a significant amount of cash, the company has encountered difficulties in using it due to the sluggish trading market.

At the company’s annual shareholder meeting in May, Buffett said he was in no rush to spend money “unless we think we’re doing something that has very little risk and can make us a lot of money.”

Berkshire Hathaway reduces stake in Bank of America

Regulatory filings reveal Berkshire Hathaway also reduced its stake in Bank of America in the second quarter, reporting a $41.1 billion take.

During that period, the company bought back $345 million of its own shares, the lowest amount since it changed its share buyback policy in 2018.

Apple’s latest sales report showed a 6.5% decline to $14.7 billion in China in the third quarter, falling short of Wall Street’s forecast of $15.3 billion due to increased competition and government restrictions on foreign technology companies.

Selling Apple shares is a significant move for Buffett

At the end of the first quarter, Berkshire’s stake in Apple was worth $135.4 billion. That value has now fallen to $84.2 billion.

The decision to sell a significant portion of Apple shares marks a significant change for Berkshire Hathaway, as Buffett had previously viewed Apple as one of the pillars of his company’s business.