Berkshire Hathaway BRK Earnings Q3 2024 | Wilnesh News

Warren Buffett sold another chunk of his stocks apple Equity, downsizing Berkshire HathawayMaintained the largest holdings for four consecutive quarters.

The Omaha-based conglomerate held $69.9 billion worth of Apple stock at the end of September, according to its third-quarter earnings report released Saturday morning. This means Buffett sold about a quarter of his shares, leaving about 300 million shares remaining. Overall, the stock is down 67.2% from the end of last year’s third quarter.

The Oracle of Omaha began reducing his stake in the iPhone maker in the fourth quarter of 2023 and stepped up the selling in the second quarter, but surprisingly, he gave up nearly half of his bets.

It’s unclear exactly what prompted the ongoing sell-off in Berkshire Hathaway’s stock, which he first bought eight years ago. Analysts and shareholders speculate this is due to high valuations and portfolio management that reduces concentration. Berkshire Hathaway’s Apple holdings were once so large that they accounted for half of her stock portfolio.

In May, at the Berkshire Hathaway annual meeting, Buffett suggested that the sell-off was for tax reasons, as he speculated that the U.S. government may raise capital gains taxes in the future to curb rising fiscal deficits. However, the size of the sale has led many to believe it is more than just a tax-saving move.

Berkshire began buying the stock in 2016 under the influence of Buffett’s investment lieutenants, Ted Weschler and Todd Combs. Buffett had avoided technology companies for much of his career before joining Apple, saying they were outside of his sphere of competence. The legendary investor fell in love with Apple for its loyal customer base and the stickiness of the iPhone, and at one point even called the tech giant Berkshire Hathaway’s second most important business, behind his Insurance company cluster.

Amid the wave of massive selling, Berkshire Hathaway’s cash reserves reached $325.2 billion in the third quarter, a record high for the group.

Apple shares are up 16% this year, lagging the S&P 500’s 20% gain.