Warren Buffett’s Berkshire Hathaway sold almost half of its large Apple stake last quarter, reducing its holding in the tech giant to $84.2 billion at the end of the second quarter. This divestment follows a 13% trim in the first quarter, which Buffett suggested was for tax reasons. Despite the sale, Apple remains Berkshire’s largest stock holding.
The sale is part of a broader pattern of divestment by Berkshire in the second quarter, where it unloaded over $75 billion in equities, boosting its cash reserves to a record $277 billion. Buffett hinted at potential tax benefits for shareholders if capital gains taxes rise. The scale of the Apple sell-off suggests there might be additional reasons beyond tax considerations.
Buffett has been known to avoid technology companies for most of his career but made an exception with Apple, which became Berkshire’s largest holding. Recent selling activities include a significant reduction in Bank of America shares, Berkshire’s second-largest stake. The sales come amid the S&P 500’s rise and concerns about the U.S. economy’s soft landing, highlighted by a weaker-than-expected July jobs report.
