Warren Buffett takes the stage before Berkshire Hathaway’s annual shareholder meeting on May 3, 2024 in Omaha, Nebraska.
David A. Grogen | David A. Grogen CNBC
Over the weekend, Warren Buffett shocked the investing world by slashing his massive fortune. apple The holding was halved, sending the tech stock plunging on Monday as a global sell-off intensified.
Berkshire Hathaway disclosed in its financial report that as of the end of the second quarter, the value of its Apple holdings was $84.2 billion, indicating that Oracle of Omaha had sold off slightly more than 49% of its technology shares.
Apple shares fell 4.8% on Monday, after falling as much as 10%. Global stock markets are on the verge of a sharp correction, fueled by concerns about an economic slowdown.
The 93-year-old legendary investor has been on a massive sell-off, offloading more than $75 billion in shares in the second quarter and boosting Berkshire’s cash hoard to a whopping $277 billion, a record high for the conglomerate . Buffett also begins selling his second-largest holding Bank of America in July.
Buffett, who has sold 13% of his Apple shares in the first quarter, has previously said it was a tax-saving move because he expected the U.S. government to raise interest rates to fund a widening fiscal deficit. However, the size of second-quarter sales likely means taxes aren’t the only driver.
Berkshire began buying the stock in 2016 under the influence of Buffett’s investing lieutenants Ted Weschler and Todd Combs. Buffett has grown so fond of Apple over the years that he has significantly increased his stake in it, making it Berkshire’s largest company and calling the tech giant the second most important after his insurance company cluster. business.
Berkshire’s holdings in Apple were so large that at one point they accounted for half of its stock portfolio, so the sell-off may also have been driven by concerns about portfolio management.
Apple’s stock price rose 23% in the second quarter to a record high amid renewed optimism about its artificial intelligence capabilities.
Apple declined to comment.
About The Author
