Berkshire Hathaway has continued to reduce its holdings in Apple throughout 2024. As a long-term Apple investor, Warren Buffett has sold off Apple shares for three consecutive quarters. As of late September, Berkshire’s Apple holdings are valued at approximately $69.9 billion, down from around $84.2 billion at the end of the previous quarter.
In the first quarter of 2024, Berkshire cut its Apple shares by 13%, followed by a 50% reduction in the second quarter, and this quarter, an additional 25%. This means Berkshire’s Apple holdings have decreased from 905 million shares at the start of the year to roughly 300 million shares now, a third of the original stake. Based on Apple’s closing price on November 1, the 905 million shares would have been worth about $201.7 billion. Although Buffett previously indicated that Apple would remain Berkshire’s largest holding, the continued sales suggest a potential strategic adjustment.
At the same time, Berkshire’s cash reserves have reached a historic high. By the end of the second quarter, Berkshire held around $277 billion in cash, a figure that climbed to $325 billion by the end of the third quarter. This sizable cash reserve provides Berkshire with substantial flexibility for future investments and acquisitions.
Notably, Buffett mentioned in the first quarter of 2024 that the Apple sales were primarily for tax purposes, but the consistent reduction implies other considerations might be at play. Market analysts speculate that Berkshire might be engaging in risk mitigation as Apple’s stock approaches an all-time high, allowing the firm to better balance its portfolio and increase liquidity.
