Warren Buffett has again decreased Berkshire Hathaway’s stake in Apple, marking the fourth consecutive quarter of reductions for the conglomerate’s largest equity holding.
Berkshire Hathaway’s latest quarterly earnings report, released Saturday, revealed Apple holdings valued at $69.9 billion at the end of September.
This represents an approximate 25% decrease in the stake, leaving Berkshire with roughly 300 million shares.
Overall, the holding has diminished by 67.2% since the end of the third quarter of the previous year.
Buffett began trimming the Apple position in the final quarter of 2023 and significantly accelerated sales in the second quarter of this year, unexpectedly divesting nearly half of the stake.
The precise motivations behind this sustained selling, which began over eight years after Berkshire’s initial investment in Apple, remain unclear.
Analysts and shareholders have speculated that high valuations and portfolio diversification efforts to reduce concentration may be contributing factors.
At one point, Apple represented half of Berkshire Hathaway’s equity portfolio.
During Berkshire Hathaway‘s annual meeting in May, Buffett suggested that tax considerations played a role in the decision, anticipating potential increases in capital gains taxes to address the growing US fiscal deficit.
However, the scale of the divestment has led many to believe that factors beyond tax savings are at play.
Berkshire initially began acquiring Apple stock in 2016, guided by Buffett’s investment deputies, Ted Weschler and Todd Combs.
Prior to this, Buffett had largely avoided technology companies, citing them as outside his area of expertise.
The renowned investor eventually embraced Apple due to its loyal customer base and the enduring appeal of the iPhone.
Over time, Apple became Berkshire’s largest holding, with Buffett even referring to the tech giant as the company’s second most important business, following its insurance cluster.
Concurrent with the Apple divestment, Berkshire Hathaway’s cash reserves reached a record $325.2 billion in the third quarter.
The firm also suspended share buybacks entirely during this period. Apple shares have seen a 16% increase year-to-date, lagging behind the S&P 500’s 20% gain.
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