Warren Buffett Sold His Apple Stock — Here’s Why

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When Warren Buffett’s Berkshire Hathaway makes big moves in the market, this time for selling off a portion of its Apple stock, investors tend to notice. The move has sparked interest and speculation among investors and market watchers alike.

Here are a few key takeaways:

• The first quarter of last year saw Buffett selling 115 million Apple Inc. (NASDAQ: AAPL) shares, which was about 13% of its stake. 
• Berkshire Hathaway’s stake stood at 790 million shares at the end of the first quarter. 
• This is estimated to be about $20 billion worth of Apple shares and those shares fell nearly 11% during the same period.
• In total, Buffett Sold 67% of Berkshire’s Stake in Apple last year.
• Though reasons for this sale vary according to experts, one of the main factors is that Buffett probably considers Apple stock so expensive that he prefers to cash in at 20% less as Berkshire must pay tax on its profits.

Keep reading to learn more about Buffett’s investing strategy.

Berkshire’s Recent Sell-Off

In the second quarter of 2024, Buffett’s company Berkshire Hathaway sold roughly $80 billion of Apple stock. However, even though this is a big chunk, Berkshire still owns a large amount of Apple shares and Apple is still one of the company’s top holdings.

Despite this sell-off, Berkshire still retains a significant stake in Apple, with more than 905 million shares valued at approximately $174 billion. This massive holding represents 6% of all Apple shares and accounts for one-fifth of Berkshire’s entire portfolio.

Buffett’s Long-Term Investment Philosophy

Warren Buffett is renowned for his long-term investment strategy, famously stating, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

The recent sale is notable as it deviates from Buffett’s typical buy-and-hold approach. However, it’s important to note that Berkshire’s overall investment in Apple remains substantial.

Previous Adjustments in Apple Holdings

This isn’t the first time Berkshire Hathaway has adjusted its position in Apple. In 2020, the company sold off about $11 billion worth of Apple stock, a decision Buffett later described as “probably a mistake.”

Despite this, Berkshire continued to show confidence in Apple as it still owns nearly 790 million shares of Apple stock or about a 5.1% stake in the company. 

Berkshire’s Other Portfolio Changes

In addition to the Apple sell-off, Berkshire Hathaway also reduced its holdings in other companies. The conglomerate sold 80 million shares of HP, cutting its stake by 78%, and pared off 32% of its holdings in media company Paramount.

Final Take To GO: Looking Ahead

The bottom line is that Warren Buffett’s decision to sell a portion of Berkshire Hathaway’s Apple stock has generated significant interest, but any big investment move he makes typically does. 

While the move might seem at odds with his long-term investment philosophy, it’s worth noting that Berkshire still maintains a substantial stake in the tech giant. As always, Buffett’s actions and insights will continue to be closely watched by the investment community.

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