Warren Buffett's Berkshire Hathaway reduces Apple stake by almost 50%
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.
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."
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.
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.
