Finance
Berkshire Hathaway BRK earnings Q3 2024
Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 4, 2024.
CNBC
Warren Buffett sold another big chuck of his Apple stake, downsizing Berkshire Hathaway‘s biggest equity holding for four quarters in a row.
The Omaha-based conglomerate held $69.9 billion worth of Apple shares at the end of September, according to its third-quarter earnings report released Saturday morning. That implied Buffett offloaded approximately a quarter of his stake with about 300 million shares remaining in the holding. In total, the stake is down 67.2% from the end of the third quarter last year.
The Oracle of Omaha started trimming his stake in the iPhone maker in the fourth quarter of 2023 and ramped up selling in the second quarter when he surprisingly dumped nearly half of the bet.
Apple, YTD
It’s unclear what exactly motivated the continuous selling in the stock Berkshire first bought more than eight years ago. Analysts and shareholders had speculated it was due to high valuations as well as portfolio management to reduce concentration. Berkshire’s Apple holding was once so big that it took up half of its equity portfolio.
In May at the Berkshire annual meeting, Buffett hinted that the selling was for tax reasons as he speculated that the tax on capital gains could be raised in the future by a U.S. government wanting to plug a climbing fiscal deficit. However, the magnitude of the sales made many believe it could be more than just a tax-saving move.
Amid the big selling spree, Berkshire’s cash hoard reached $325.2 billion in the third quarter, an all-time high for the conglomerate.
Class A shares of Berkshire have gained 25% this year, outpacing the S&P 500’s 20.1% year-to-date return. The conglomerate crossed a $1 trillion market cap milestone in the third quarter when it hit an all-time high.
Apple shares are up 16% on the year, trailing the S&P 500’s 20% gain.
This is breaking news. Please check back for updates.
-
Blog Post1 week agoRecording Loan Transactions and Interest Payments for Financial Accuracy
-
Leaders1 week agoMark Cuban is The Maverick Entrepreneur Changing Business and Beyond
-
Personal Finance1 week agoThese big inherited IRA mistakes can shrink your windfall
-
Technology1 week agoQuantum Computing is Transforming Industries, Security, and Future Technologies
-
Economics1 week agoChecks and Balance newsletter: Who is (or was) the smartest person in government?
-
Finance1 week agoPlanning for retirement? What to know about traditional, Roth IRAs
-
Economics1 week agoDOGE comes for the data wonks
-
Accounting1 week agoGASB mulls accounting for severe financial stress and probable dissolution