Warren Buffett’s investment company, Berkshire Hathaway, held its stake in Apple steady at 300 million shares for the second quarter. This is a significant reduction from last year. Berkshire’s regulatory filing shows that the company owned 300 million shares of Apple at the end of 2024.
This is the same amount held at the end of the third quarter. Apple remains Berkshire’s largest stock stake. However, the company had previously reduced its Apple holding over four consecutive quarters.
In the third quarter of 2023, Berkshire held 915.6 million shares of the tech stock. At Berkshire’s annual meeting last year, Buffett said that selling “a little Apple” would benefit shareholders in the long run. This would be especially true if capital gains taxes were raised to address a growing fiscal deficit.
However, the selling scale led many to believe it was driven by more than just tax considerations.
Berkshire holds steady with Apple
Some thought that Buffett was concerned about the high market valuation.
Others saw it as part of portfolio management strategies. The Apple stake once accounted for more than half of Berkshire’s portfolio. Investors are now waiting for Buffett’s annual letter.
It is set to be released Saturday morning along with Berkshire’s quarterly earnings. The letter will provide insights into Berkshire’s stance on Apple and the broader market. Overall, Buffett has been in a selling mode.
According to Edward Jones analyst James Shanahan, who covers Berkshire, sales have exceeded stock purchases for nine consecutive quarters. As a result, the company’s cash reserves reached a record $300 billion in the third quarter of 2024.
Solid free-cash-flow generation has contributed to the increase, but stock sales have had a far greater impact,” Shanahan said.
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