Warren Buffett’s Berkshire Hathaway sold a massive $80 billion worth of Apple stock in the second quarter of 2024. This move surprised many, as Apple remains the top holding in Berkshire’s portfolio. Buffett invested only a small portion of the proceeds from the Apple sale into other stocks.
He bought nearly 97 million additional shares of Sirius XM Holdings for about $3.7 billion. Berkshire also added to its positions in Occidental Petroleum, but the amounts were in the hundreds of millions, not billions. New positions were initiated by buying around 1.04 million shares of unspecified companies worth $185.4 million and a little over 690,000 shares of Ulta Beauty, valued at $266.3 million at the end of the quarter.
Berkshire also spent $2.9 billion on share repurchases in the first half of 2024. Most of the money from the Apple sales was invested in U.S. Treasuries.
Buffett shifts from Apple to Treasuries
Berkshire’s holdings in Treasuries increased from $157.4 billion at the end of Q1 to $238.7 billion by the end of Q2, a rise of $81.3 billion. The company’s cash position, excluding short-term Treasuries, also grew by around $4 billion during this period. Buffett sees U.S. Treasuries as a safer and more stable investment, especially with high stock prices.
The current yield for short-term Treasuries remains above 4.5%, providing a secure way to grow funds while waiting for better stock market opportunities. However, investors should consider their own goals before copying Buffett’s moves. Buffett himself bought six stocks in Q2, showing that attractive opportunities can still be found even in high-priced markets.
In conclusion, while Buffett believes Apple is a great business, he currently views the safe and steady returns from U.S. Treasuries as a better choice for a large portion of Berkshire’s funds. This strategy is worth considering for cautious investors.
