Berkshire Reduces Apple Stake in Strategic Portfolio Shift

Published 12 hours agoAAPL

Berkshire Reduces Apple Stake in Strategic Portfolio Shift

Warren Buffett's Berkshire Hathaway has made a significant move by reducing its holdings in Apple Inc., selling $75.5 billion worth of stock in the second quarter of 2024. Despite this substantial sale, Buffett maintains that Apple remains a core long-term investment for his firm. This decision has increased Berkshire's cash reserves to a record $276.9 billion.

Initially, Berkshire's commitment to Apple began in the first quarter of 2016, when it purchased around 9.8 million shares for nearly $1 billion. By the end of that year, the stake rose to 57.4 million shares, marking a 1.1% share in the tech giant. The accumulation continued into 2017, reaching 129 million shares. Reuters highlighted that by 2021, the value of Berkshire's Apple investment had exceeded $160 billion, generating more than $100 billion in paper gains over six years.

Buffett's strategic pivot towards tech stocks was underscored by his repeated praise for Apple's business strengths, such as brand loyalty and its comprehensive consumer ecosystem. In addition to capital gains, Berkshire has enjoyed an annual dividend income of approximately $775 million from Apple. This investment illustrates Buffett's adaptive strategy in recognizing the significant value within leading technology firms.

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