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Reuters/Rick Wilking
- Berkshire Hathaway has once again decreased its investment in Apple during the third quarter of 2024.
- The company has now reduced its Apple shares by approximately two-thirds over the past year.
- Buffett’s firm has divested from other significant investments, amassing a cash reserve of $325 billion.
Berkshire Hathaway’s Ongoing Reduction in Apple Holdings
Warren Buffett’s Berkshire Hathaway continues to trim its stake in Apple Inc., as revealed in their latest earnings report for the third quarter of 2024, released on Saturday.
The Omaha-based conglomerate has lowered its investment in the tech giant to just below $70 billion. This marks a significant reduction from approximately $174.3 billion at the close of 2023, indicating a decrease of around two-thirds within just one year.
A Shift Towards Cash Reserves
Throughout the past year, Berkshire Hathaway has been actively selling off shares while simultaneously increasing its cash reserves. Earlier this year, Buffett also divested about $10 billion from his substantial holdings in Bank of America. Currently, the company boasts over $325 billion in cash and did not report any stock buybacks during Q3 2024.
The Rationale Behind Selling Shares
While Berkshire Hathaway hasn’t explicitly stated why it is offloading shares of Apple, Buffett hinted at potential tax implications during an annual meeting held in May. He suggested that he might be selling shares preemptively due to expectations that capital gains taxes could rise under U.S. government policy changes, as reported by CNBC.
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