Berkshire Hathaway unloaded more than half of its Apple stock last quarter

Posted:
in AAPL Investors

In a surprise move, in the second quarter of 2024, Warren Buffett's Berkshire Hathaway made the biggest sale of Apple in years, unloading around 400 million shares and missing the post-WWDC stock peak.

Tim Cook (left) and Warren Buffett (right) stand together smiling inside Apple Park with large glass windows overlooking a landscaped outdoor area.
Tim Cook and Warren Buffett in Apple Park



In December 2023, Berkshire Hathaway held about $174.3 billion in Apple stock. As of the Saturday report, the company now holds about $84.2 billion in Apple stock, barring more sales in the last month.

The most it could have sold the shares for is $192.35 on May 21. Apple stock's best price of the year was just a few weeks after the quarter closed, post-WWDC, with it hitting $234.82 on July 16.

Apple stock closed at $219.86 on Friday, following earnings that beat Wall Street's expectations.

Following the sale, the firm owns about 2.6% of Apple. That stake is worth about $88 billion.

The sale is just the latest in a series of stake-trims. Berkshire Hathaway unloaded about 12.5% of its Apple holdings in the first quarter of 2024, before the second quarter's sale. And the firm ended 2023 with a sale of Apple as well.

Despite all the moves, Apple is still Berkshire Hathaway's largest holding value-wise.

A similar percentage of Apple shares that the firm held were unloaded in 2020 and 2021. After the fact, Warren Buffett called that round of sales "probably a mistake."



Read on AppleInsider

Comments

  • Reply 1 of 14
    KoronKoron Posts: 2member
    Not surprising at all!

    The  position had to be trimmed, because it was overweighted.

    The real story here is, that today’s stock price is higher and  bought a crazy amount of stocks back, during last fiscal quarter. 
    dewmessfe11MacProtmayzeus423watto_cobra
  • Reply 2 of 14
    It is rarely possible to sell at the best possible high, and buy at the best possible low.  

    Back some years ago, Berkshire Hathaway unloaded investments in GE and IBM.  Both continued to go down for a few years.  Both are higher now.  

    When an investment is up by a large amount, many will sell part of the investment, usually part or all of the cost basis of the investment.  If the company is still solid, and the price drops, you may be able to buy it back at a lower share price in a few months or years.  I've been successful in past years swing trading Shell, IBM, Intel and a few others. Due to multiple wars, Shell has not cooperated lately (as far as falling enough to make it worth while).  I missed selling Intel when it was in the fifties the most recent time (late Dec, 2023), but in the last six years, sold several times around 50 and bought in the 20-30 range.  Intel may be a falling knife for the short to intermediate term.  
    watto_cobra
  • Reply 3 of 14
    KoronKoron Posts: 2member

    Based on Berkshire's 10-Q, Warren Buffett cut Berkshire's remaining AAPL stake by 50% last quarter. The stake now valued at $84B (30% o portfolio). At its peak, the stake was about 50% of the portfolio.

    Source: Neil Cybart & @neilcybart

    grandact73
  • Reply 4 of 14
    Warren Buffett may be one of the greatest investors of all time, but he's also made his share of bad moves over the decades.  At one time, for example, Berkshire Hathaway had a huge stake in McDonald's, but Warren dumped it all in 1998.  Since then, McDonald's has outperformed him, returning 2031% while Berkshire Hathaway has returned 1300%.  
    ssfe11MacProwatto_cobra
  • Reply 5 of 14
    ssfe11ssfe11 Posts: 73member
    So stock still ramped higher even with Berkshire selling so much. Agreed they had to unload shares. Even brka cant have half portfolio in one stock lol. 
    zeus423
  • Reply 6 of 14
    Fred257Fred257 Posts: 250member
    August always has the same pattern in the stock markets. It’s largely controlled by computers btw, not individual investors. This is a lie. Stocks are usually artificially inflated in July. Then, August usually sees a giant sell off. I’ve been following the market since I was a teenager. This is the pattern. The interesting thing this year is bad economic numbers usually equate to stock market highs.  Apple is not an overvalued company. It always outperforms everyone else. And yet, they are always downgraded. This pattern has been going on since 1997. Buffet knows what he’s doing and he makes his moves on things that will show more growth long term. This has nothing to do with Apple.
  • Reply 7 of 14
    YP101YP101 Posts: 169member
    It does not matter. Apple announced numerous buy back. It can hold price.
  • Reply 8 of 14
    PemaPema Posts: 98member
    Right to Left in the picture: right dumbo (I am selling Apple and Buying Oil) Left smart and savvy (I keep building and enhancing an iconic American company) - soon to surpass $ Trillion. 
  • Reply 9 of 14

    Warren Buffett & Berkshire Hathaway should be ashamed of themselves. A contractor, covered by Berkshire Hathaway, damaged my home. According to the Berkshire Hathaway claims inspector, $57k worth of visible damages to my 1200 sq.ft. home. The itemized estimate of all damages such as scratched kitchen cabinets, broken/cracked granite kitchen countertop, leaking plumbing that the contractor hooked up causing water damage, etc.  Berkshire Hathaway only offered a payout for damages of of $7k (cost to replace granite for my kitchen alone is $4k) $7k?? It's laughable and disgusting and disheartening. Berkshire Hathaway covered this contractor who did the damage.  

    No one can imagine the enormous  stress of trying to deal with the damage to our home. This has taken a toll on our well-being, our physical as well as mental health. We are surviving rather than thriving. 

    My son has a hard time staying focused on his studies as we stress daily 24/7 just trying to manage. Most people would say by the damage the contractor did to just tear the house down. Yeah, easier said then done since the contractor took my savings and my account isn't lined in gold.

    I've called and called and the adjuster at Berkshire Hathaway and left many messages. I still have not received a return call. I emailed Berkshire Hathaway and no response. What kind of bologna is that? And that in itself exhasorbates the stress we feel. 

    Great job Warren Buffett and Berkshire Hathaway! You must be very proud! 

    While Warren Buffett makes money off the stock market, I feel he's needs to look into this. But will he? No he won't! Why you ask? Because Berkshire Hathaway's 2023 revenue of $364.5 billion dollars. Talk getting rich off the poor! 

    Message to Warren Buffett

    A home is supposed to be a sanctuary for family and friends and a peace of mind. Please kindly have the adjusters return my calls? I pretty sure with $3 billion in revenue the adjusters have telephones and email. 

    Sincerely, 

    Surviving not thriving in Indiana.

    zeus423
  • Reply 10 of 14

    Warren Buffett & Berkshire Hathaway should be ashamed of themselves. A contractor, covered by Berkshire Hathaway, damaged my home. According to the Berkshire Hathaway claims inspector, $57k worth of visible damages to my 1200 sq.ft. home. The itemized estimate of all damages such as scratched kitchen cabinets, broken/cracked granite kitchen countertop, leaking plumbing that the contractor hooked up causing water damage, etc.  Berkshire Hathaway only offered a payout for damages of of $7k (cost to replace granite for my kitchen alone is $4k) $7k?? It's laughable and disgusting and disheartening. Berkshire Hathaway covered this contractor who did the damage.  

    No one can imagine the enormous  stress of trying to deal with the damage to our home. This has taken a toll on our well-being, our physical as well as mental health. We are surviving rather than thriving. 

    My son has a hard time staying focused on his studies as we stress daily 24/7 just trying to manage. Most people would say by the damage the contractor did to just tear the house down. Yeah, easier said then done since the contractor took my savings and my account isn't lined in gold.

    I've called and called and the adjuster at Berkshire Hathaway and left many messages. I still have not received a return call. I emailed Berkshire Hathaway and no response. What kind of bologna is that? And that in itself exhasorbates the stress we feel. 

    Great job Warren Buffett and Berkshire Hathaway! You must be very proud! 

    While Warren Buffett makes money off the stock market, I feel he's needs to look into this. But will he? No he won't! Why you ask? Because Berkshire Hathaway's 2023 revenue of $364.5 billion dollars. Talk getting rich off the poor! 

    Message to Warren Buffett

    A home is supposed to be a sanctuary for family and friends and a peace of mind. Please kindly have the adjusters return my calls? I pretty sure with $3 billion in revenue the adjusters have telephones and email. 

    Sincerely, 

    Surviving not thriving in Indiana.

    You may have better results sending a written or typed letter to either the CEO or Chairman of the Board of Berkshire.  You can find the name and street address on sites like Morningstar, Bloomberg, or many online investment trading platforms.  I've had a 50% success rate.  Keep the tone of the the letter factual and calm, and state specifically the outcome you would like to see.  I've written letters to executives at Ford, GM, IBM,  Met Life and Volkswagen.  If you carry homeowners insurance, you may want to talk to the carrier.  Last resort would be to talk to an arbitrator or attorney (which may incur fees).  If you signed a contract with the contractor, you may be limited to arbitration.  
    zeus423
  • Reply 11 of 14
    ssfe11ssfe11 Posts: 73member
    It’s funny how basically no one really cares anymore that Buffett sold Apple. He had too first of all and second his portfolio is still 30% Apple!
  • Reply 12 of 14
    as many have said this was an expected portfolio rebalancing play. Also - they have a huge cash pile now and they tend to go for bold moves. I wonder which company they have on their radar.
    zeus423
  • Reply 13 of 14
    blastdoorblastdoor Posts: 3,516member
    as many have said this was an expected portfolio rebalancing play. Also - they have a huge cash pile now and they tend to go for bold moves. I wonder which company they have on their radar.
    Intel is very cheap right now. There’s a lot of risk but also a lot of potential. If their 18A process meets their expectations then they could be trading at $100 in 5 years. On the other hand, if 18A falls well short then Intel might be trading in the single digits. I wonder if Berkshire will buy some INTC.

    There’s a lot of geopolitical risk in AAPL right now that I think is not reflected in the stock price. I think Berkshire is wise to back away from that risk. 
    nubusmuthuk_vanalingamtmaygatorguy
  • Reply 14 of 14
    danoxdanox Posts: 3,213member
    Stocks are evidently suffering a little mini crash today, follow the money and you will find out who initiated/benefited from it plausible deniability, of course. :smile:
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