Buffett Sells Half Stake in Apple, Berkshire Hathaway’s Quarterly Results Show
Berkshire Hathaway’s recent results unveiled a surprising move as the conglomerate sold off approximately half of its stake in Apple, despite reporting a record-breaking quarterly operating profit. Here are some key takeaways from this development:
- Berkshire Hathaway sold around 390 million Apple shares in the second quarter, following an initial 115 million sold from January to March. This significant divestment occurred as Apple’s stock price surged by 23%.
- Despite liquidating a substantial portion of its Apple holdings, Berkshire still maintains ownership of approximately 400 million Apple shares valued at $84.2 billion as of June 30th.
- Wedbush, in a note on Saturday, highlighted Berkshire’s gradual sell-off of Apple stock over the past year. They pointed out that in the first quarter, Berkshire sold over 10% of its Apple stake, indicating a strategic shift in its investment portfolio rather than a sudden move.
- Interestingly, Berkshire’s investment in Apple remains its top position, significantly surpassing its next largest holding in Bank of America at roughly $41 billion. This reaffirms Warren Buffett’s confidence in the tech giant.
- While some may interpret this move as a bearish signal, especially after Friday’s tech stock sell-off, Wedbush stressed that Buffett’s faith in Apple remains unwavering. They emphasized that Apple’s recent performance, coupled with promising guidance for the future, reinforces the bullish case for the company.
- Wedbush reiterated that Apple’s stellar June quarter performance, combined with optimistic forecasts for the upcoming iPhone 16 super cycle, strengthens the long-term investment thesis for the stock.
In conclusion, Berkshire Hathaway’s decision to reduce its Apple stake may raise eyebrows in the market, but it does not reflect a lack of conviction in the company. As investors navigate through volatile market conditions, Buffett’s steadfast belief in Apple underscores the enduring value of the tech giant in his portfolio.
