Warren Buffett’s company Berkshire Hathaway has sold nearly half of its stake in tech giant Apple, increasing the company’s cash reserves to about $280 billion.
According to Saturday’s report, Berkshire did not mention the exact number of Apple shares it owns, but it estimated that the investment was worth $84.2 billion at the end of the second quarter, while the price of shares reached $237.23 in the summer. At the end of the first quarter, Berkshire’s stake in Apple was valued at $135.4 billion.
Selling a large chunk of Apple Inc is a significant move for Berkshire Hathaway, as Buffett called Apple the pillar of Berkshire’s business. Along with Apple, Berkshire Hathaway has also sold shares of BYD and Bank of America this quarter.
Berkshire Hathaway earned $30.348 billion in the second quarter, down 18.33 percent from $35.912 billion, or $24,775 per Class A share, in the same period last fiscal year. The paper value of the company’s investment portfolio fell by $28.2 billion in the second quarter this year, up $24.2 billion last year. The company’s net income fell 15% year-over-year to $30.34 billion.
Berkshire Hathaway sold shares worth $75.5 billion in the second quarter of the 2024 calendar year. Its operating income reached $11.6 billion, up 1.6 percent from the same period last year.
Focusing on Apple’s results, the company has said it is losing ground in its largest overseas markets due to increased competition, Bloomberg reports. China’s economic growth has also weakened, and the government is also restricting the operations of foreign companies.
This move by Berkshire Hathaway has raised concerns among investors, especially since Buffett considered Apple an important part of his company. The decline in Apple’s shares and the status of other investments has indicated that Berkshire is now trying to restructure its investment portfolio.
In this situation, investors need to understand that Berkshire Hathaway’s decisions can have a wide impact, especially when a renowned investor such as Buffett is making changes to his investments. This move can be an important signal not only for Berkshire, but for the entire market.
