Warren Buffett’s Berkshire Hathaway is having a strong year in 2024, with Class A shares climbing 27% and outperforming the S&P 500. This is despite Buffett making some surprising moves, such as selling significant portions of his top holdings, Apple and Bank of America. Buffett began trimming his stake in Apple in the fourth quarter of 2023 and ramped up selling in the second quarter of 2024, dumping nearly half of the position.
He now owns about 300 million shares, down 67.2% from the end of the third quarter of last year. Buffett also downsized his longtime Bank of America stake, taking the holding below the 10% threshold. Both Apple and Bank of America have performed well this year, with Apple up nearly 28% and Bank of America up over 35%.
Berkshire sold a total of $133 billion worth of stocks in the first three quarters of 2024.
Berkshire’s stock strategy in 2024
As Berkshire’s rally pushed up valuations, Buffett decided to halt buybacks.
The company did not repurchase any shares during the third quarter. Berkshire’s cash pile topped $300 billion for the first time during the third quarter amid Buffett’s stock selling spree. Some believe that Buffett is holding out for better opportunities when prices come down during an economic downturn.
Berkshire did make a few small equity investments during the year, likely by Buffett’s investing lieutenants Ted Weschler and Todd Combs. The conglomerate disclosed a $500 million stake in Domino’s Pizza and a small position in swimming pool supplier Pool Corp. last quarter.
Berkshire also increased its stake in the satellite radio company SiriusXM to over 30%.
