Berkshire Hathaway Trims Apple Stake in Q2

Warren Buffett's Berkshire Hathaway disclosed the sale of a portion of its Apple (AAPL) stock holdings during the second quarter of 2024. The shares sold were valued at over $4 billion, signaling a continued trimming of one of its most profitable trades ever.

Sale Details

Berkshire sold 20 million Apple shares between April and June, reducing its total holdings to 280 million shares, with a total value of $57.4 billion. This marks the first time the company has sold Apple shares since the third quarter of 2023, following a wave of reductions that saw Buffett's stake cut by more than two-thirds.

Why Is Buffett Selling Apple?

Buffett's decision to sell Apple shares is partly attributed to the desire to realize significant profits from the investment that began in 2016. Additionally, the proceeds from the sale were used to invest in short-term U.S. Treasury bills, contributing to Berkshire's record-high cash reserves.

Impact on Berkshire's Portfolio

Despite the sale, Apple remains the largest holding in Berkshire's investment portfolio, representing about one-fifth of the portfolio's total value of $268 billion. Some investors attribute the sale decision to Apple's high valuation, which has seen a significant increase since Buffett's initial investment.

Other Moves in Berkshire's Portfolio

In addition to selling Apple shares, Berkshire also sold shares in Bank of America (BAC) and relinquished its position in T-Mobile (TMUS). In contrast, the company increased its stakes in companies such as Chevron (CVX), Domino's Pizza (DPZ), and Constellation Brands (STZ). Berkshire also disclosed its acquisition of shares in homebuilders Lennar (LEN) and DR Horton (DHI) and steel manufacturer Nucor (NUE).

Investment in UnitedHealth

Berkshire also made a new investment in health insurer UnitedHealth (UNH), with a stake valued at $1.6 billion at the end of June. This investment comes at a time when UnitedHealth is facing challenges, including government investigations and declining financial performance.

Future Outlook

Berkshire Hathaway's decision to sell Apple shares and make other adjustments to its portfolio reflects a cautious and strategic approach to investment management. By focusing on realizing profits and diversifying investments, the company seeks to maintain its strong performance in the stock market.

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