Berkshire Hathaway has cut its stake in Apple by approximately two-thirds over the last year. As of the end of the third quarter of 2024, Berkshire’s holdings in Apple have been reduced to about $69.9 billion, down from $174.3 billion at the end of 2023.
In the third quarter of 2024, Berkshire sold an additional 100 million shares of Apple, which is roughly a quarter of its holding. This brings the total number of Apple shares held by Berkshire to around 300 million.
The sale of Apple shares has contributed to a record-high cash stockpile for Berkshire Hathaway, now standing at $325.2 billion. This significant cash reserve is part of Buffett’s strategy to maintain liquidity and prepare for potential future investment opportunities or economic uncertainties.
One of the primary reasons for reducing the Apple stake is the high valuation of the stock. When Berkshire first invested in Apple in 2016, the price-earnings ratio (P/E) was around 10-15 times earnings per share. However, this ratio has expanded to around 30-36 times earnings per share, making it less attractive for long-term returns.
