Under Warren Buffett’s leadership, Berkshire Hathaway sold nearly half of its Apple shares, drastically reducing the company’s investment in the computer behemoth.
The value of Berkshire’s Apple assets fell to $84.2 billion by the end of the second quarter, according to the company’s most recent financial report, indicating a sale of almost 50% of its stake. Apple stock continues to hold the largest position in Berkshire’s portfolio despite this massive sell-off.
Buffett alluded to the fact that taxes played a role in the transactions during the Berkshire annual meeting in May. In the event that capital gains taxes rise in the future, he said that Berkshire shareholders would benefit from lowering their Apple holdings.
Apple’s stock experienced a remarkable surge of 23% during the second quarter, reaching a new record, driven by investor euphoria regarding the company’s AI focus. The prior quarter saw a drop in the stock price due to worries that Apple was falling behind in AI innovation. This increase in price came after that.
Half of Berkshire’s equity portfolio was once made up of its investment in Apple. Buffett has been actively reducing his shares in other significant companies in addition to Apple. Notably, he has also started to reduce its holding in Bank of America, which is Berkshire’s second-largest investment.
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