Berkshire Hathaway's Significant Reduction in Apple Holdings

Warren Buffett's investment behemoth, Berkshire Hathaway, has made another major reduction in its Apple stock.

According to the latest earnings release, the conglomerate cut its shares in Apple to below $70 billion as of the third quarter of 2024, reflecting a significant drawdown over the past year.

Since the beginning of 2023, Berkshire Hathaway has been gradually decreasing its Apple shareholdings. With initial investments topping $174 billion by the end of that year, the company has now slashed its Apple assets by approximately two-thirds.

Throughout the past year, Berkshire has consistently divested from numerous holdings, including some of its largest, while amassing over $325 billion in cash reserves. Notably, Buffett sold $10 billion worth of shares in Bank of America earlier this year, and Berkshire has not engaged in any stock buybacks in the third quarter of 2024.

Potential Reasons for the Sell-off

While the rationale behind the Apple stock sell-off remains unspecified, Buffett suggested during Berkshire's annual meeting in May that tax considerations might be a factor. He speculated that capital gains taxes could rise, prompting the sale of assets to gain profits before any increase.