Warren Buffett speaks at Berkshire Hathaway’s annual shareholder meeting on May 4, 2024 in Omaha, Nebraska.
CNBC
Warren Buffett sold another chunk of his stocks apple Equity, downsizing Berkshire HathawayMaintained the largest holdings for four consecutive quarters.
The Omaha-based conglomerate held $69.9 billion worth of Apple stock at the end of September, according to its third-quarter earnings report released Saturday morning. This means Buffett sold about a quarter of his shares, leaving about 300 million shares remaining. Overall, the stock is down 67.2% from the end of last year’s third quarter.
The Oracle of Omaha began reducing his stake in the iPhone maker in the fourth quarter of 2023 and stepped up the selling in the second quarter, when he unexpectedly Lost nearly half of the bet.
Apple, year to date
It’s unclear exactly what prompted the ongoing sell-off in Berkshire Hathaway’s stock, which he first bought eight years ago. Analysts and shareholders speculate this is due to high valuations and portfolio management that reduces concentration. Berkshire Hathaway’s Apple holdings were once so large that they accounted for half of her stock portfolio.
In May, at the Berkshire Hathaway annual meeting, Buffett suggested that the sell-off was for tax reasons, as he speculated that the U.S. government may raise capital gains taxes in the future to curb rising fiscal deficits. However, the size of the sale has led many to believe it is more than just a tax-saving move.
Amid the wave of massive selling, Berkshire Hathaway’s cash reserves reached $325.2 billion in the third quarter, a record high for the group.
Berkshire Hathaway shares are up 25% this year, beating the S&P 500’s year-to-date return of 20.1%. The group’s market capitalization exceeded the US$1 trillion milestone in the third quarter, setting a record high.
Apple shares are up 16% this year, lagging the S&P 500’s 20% gain.
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