Apple Stock Sinks After Warren Buffett’s Berkshire Hathaway Cuts Stake

Warren Buffett’s Berkshire Hathaway significantly reduced Apple Stock its stake in tech giant Apple by nearly 50%, as revealed in the company’s second-quarter earnings report released on Saturday.

Berkshire Hathaway reported that its Apple holdings were valued at $84.2 billion at the end of the quarter, with shares dropping from 790 million to 400 million. This notable selloff is surprising for Buffett, who typically holds onto stocks for extended periods.

Apple did not respond to CNN’s request for comment.

Berkshire Hathaway has previously decreased its Apple stake, which has a market cap exceeding $3.3 trillion. In the final three months of 2023, Berkshire sold 10 million Apple Stock shares, representing about 1% of its holdings in the company. In the first quarter of 2024, Berkshire reduced its Apple stake by 13%.

Meanwhile, the Omaha, Nebraska-based conglomerate reported a record cash reserve of nearly $277 billion for the second quarter, up from about $189 billion in the first quarter.

Berkshire Hathaway sold off $75.5 billion in stock in the second quarter. In addition to Apple, Berkshire reduced its stake in its second-largest position, Bank of America, to $41.1 billion.

The earnings report indicated that approximately 72% of Berkshire’s aggregate fair value is concentrated in five companies: American Express ($35.1 billion), Apple ($84.2 billion), Bank of America ($41.1 billion), Coca-Cola ($25.5 billion), and Chevron ($18.6 billion).