November 2, 2024

Berkshire Hathaway continues dumping AAPL to build up cash reserves

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Buffett meets with Apple CEO Tim Cook. Image credit: Apple

Financial firm Berkshire Hathway has spent a year reducing its shares of AAPL stock, which once took up half of chairman Warren Buffett’s entire portfolio.

For the fiscal third quarter 2024, which ended on September 30, Buffett still held $69.9 billion in AAPL, or around 300 million shares. One year ago, his firm had four times as many shares in the iPhone maker.

Berkshire Hathaway has given no reason for the year-long selloff, though other financial analysts have speculated that Buffett may consider the stock overvalued. AAPL is up 20 percent for the year so far, which compares to the average performance of the S&P 500 overall for 2024.

Buffett and his managers have been selling Apple stock for across last four quarters. Buffett himself has suggested that he believes a higher tax on capital gains is coming.

The rise and fall of Buffett’s AAPL holdings

Currently, AAPL is hovering between $220 and $230 per share, up significantly from a 2024 low of $165. Buffett first began buying stock in the iPhone maker in 2016, having previously mostly avoided investments in technology firms.

Apple stock quickly became a mainstay of Berkshire Hathaway’s fund over the years, at one point reaching a $170 billion-plus stake in the company. In mid-2024, the firm surprised markets when it dumped half of its previous Apple holdings in a single quarter.

Buffett has frequently said he “fell in love” with Apple because of the loyalty customers have for the brand, alongside the massive success of the iPhone in particular. However, selling the stock has helped Berkshire Hathaway amass a cash hoard of some $352 billion, the highest the firm has ever held.

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