The Editor’s Digest is available for free access, featuring a selection of favorite stories curated by Roula Khalaf, Editor of the Financial Times, in a weekly newsletter.
Warren Buffett has continued to significantly reduce his holdings in Apple amidst a broader strategy where Berkshire Hathaway has divested $166 billion in stocks over the past two years. Finding fewer appealing investments in the U.S. stock market, Berkshire has disclosed a reduction in its Apple stake to $69.9 billion during the third quarter, shedding an additional 100 million shares.
Within just over a year, Buffett has sold nearly two-thirds of his shares in the technology company, which, at its peak in 2023, represented $178 billion of Berkshire’s stock portfolio. This represents a considerable shift in strategy for Buffett, who had previously categorized Apple as one of Berkshire’s “four giants,” encompassing a substantial portion of its value.
The conglomerate has also been decreasing its holdings in Bank of America, selling $36.1 billion in stocks over the three months leading to September. Despite the sell-off, Buffett has made minimal purchases in the U.S. stock market, acquiring equities valued at only $1.5 billion. For eight consecutive quarters, Berkshire has been a net seller of equities.
In response to these sales, Buffett has redirected the income into short-term Treasury bills, elevating Berkshire’s cash reserves to a record $325.2 billion.
This situation is still unfolding.
