Warren Buffett's Berkshire Hathaway reduces Apple stake by almost 50%
What's the story
Warren Buffett's Berkshire Hathaway has reduced its stake in Apple by almost 50%, during a selling spree in Q2. Its holdings in Apple were valued at $84.2 billion at the end of the quarter, dropping from 790 million shares to 400 million. This move has resulted in the company's cash reserves reaching an all-time high of $276.9 billion. The conglomerate sold $75.5 billion worth of stock on a net basis during this period.
Financial performance
Operating earnings rise amid stock sell-off
Berkshire Hathaway reported an increase in operating earnings to $11.6 billion, up from $10 billion for the same period a year back. Despite amassing a substantial cash pile, the company has faced challenges in deploying its funds due to a sluggish deal environment. At the company's annual shareholder meeting in May, Buffett stated that he wasn't in a rush to spend "unless we think we're doing something that has very little risk and can make us a lot of money."
Investment changes
Berkshire Hathaway trims stake in Bank of America
Regulatory filings reveal that Berkshire Hathaway also reduced its stake in Bank of America during the second quarter, reporting a $41.1 billion stake. The firm repurchased $345 million of its own shares during this period, marking the lowest amount since it changed its buyback policy in 2018. Apple's recent sales report showed a 6.5% decline to $14.7 billion in China for Q3, missing Wall Street's projection of $15.3 billion due to increased competition and government restrictions on foreign technology firms.
Stake retention
Selling Apple shares is a significant move for Buffett
At the end of Q1, Berkshire's Apple stake was valued at $135.4 billion which has now come down to $84.2 billion. This decision to sell off a large portion of its Apple shares marks a significant shift for Berkshire Hathaway, as Buffett had previously referred to Apple as one of the pillars of his company's business.