Warren Buffet’s Berkshire Hathaway sells half its Apple stock

Aug 4, 2024

Berkshire Hathaway reduces Apple stake by 50%, reaping significant profits, hints at changing investment strategy amidst Apple's mixed performance.

Warren Buffet’s Berkshire Hathaway sells half its Apple stock

: Berkshire Hathaway, led by Warren Buffett, halved its Apple holdings to $84.2 billion. This follows a prior 13% reduction for potential tax reasons. Buffett's strategic sell-off also includes $3.8 billion in Bank of America shares. The move coincides with Apple's third-quarter earnings report showing iPhone sales decline and a focus on AI development.

Warren Buffett's Berkshire Hathaway cut its Apple holdings by around half, reducing the stake to $84.2 billion as per an SEC filing. Although Apple remains Berkshire's largest stock holding, this follows a previous 13% reduction, implying Buffett didn’t mind selling some for tax benefits.

The sale resulted in huge profits, as calculated by The Financial Times, marking a significant shift since Buffett began investing in Apple in 2016. The decision might indicate reduced confidence in Apple or simply a broader selling trend, as exemplified by the $3.8 billion sale of Bank of America shares.

Apple's recent third-quarter earnings report showed a decline in iPhone sales for the second consecutive quarter amid competition from Huawei in China. CEO Tim Cook highlighted a strategic pivot towards AI, preparing to launch the Apple Intelligence suite this fall.