Warren Buffett Surprises Investors With Significant Apple Stock Sale
In a surprise move, legendary investor Warren Buffett has significantly reduced his stake in tech giant Apple through his multinational holding company Berkshire Hathaway. Buffett has long been one of Apple's most prominent backers, calling the company one of Berkshire's “four giants” alongside its insurance and railway businesses.
However, Berkshire's latest quarterly filings reveal that the Apple investment, which amounted to over $135 billion at the start of 2024, has now been slashed to around $84 billion. This represents a huge sale of over 116 million Apple shares in just a few months.
While Buffett has trimmed the Apple stake marginally before, the scale of this reduction has taken investors by surprise given his previous strong endorsements of Apple and CEO Tim Cook. Some analysts believe it may signal Buffett sees tougher times ahead for tech stocks and the broader economy.
Berkshire is now sitting on a record $277 billion in cash reserves, up massively from $189 billion last quarter. Although Apple remains its largest single investment, Berkshire appears to be positioning itself defensively.
While supporters say Buffett remains bullish on Apple's long-term prospects, the sale is an unusual move that has unsettled some in the market who see Buffett as a bellwether. It remains to be seen if this is simply prudent portfolio management or a sign of broader economic concerns from the legendary investor.
