According to some documents released this Saturday, Warren Buffett’s company reduced its position in Apple stock price with $50 billion reaching $84.2 billion in the second quarter. This reduction means that Berkshire Hathaway offloaded about 50% of the tech stake. After this big sale, Apple stock remains the largest stake for Berkshire.
Warren Buffett has been selling off a large portion of Berkshire Hathaway’s stocks, including Apple shares in the first quarter by 13%. This comes after he sold over $75 billion in stocks in the past quarter, building up a massive cash reserve of $277 billion.
While Buffet claimed that the Apple stock sale was to avoid potential future taxes, the huge amount of stock sold makes people wonder if there’s more to the story.
In the first quarter, Apple shares were falling behind on artificial intelligence innovation, but after giving more details about the future of artificial intelligence to investors, Apple shares gained 23% reaching a new record.
Why Warren Buffet sold his Berkshire Hathaway stock from Apple?
It isn't yet clear why Buffett is selling the holding Berkshire now that he bought it more than eight years ago. Many reasons might underlie this, like portfolio management concerts or market valuation. Warren Buffet doesn’t want to grow too large a single holding because an Apple holding was once so big that it took up about half of Buffett's equity portfolio.
For most of his career Warren Buffett, the 93-year-old investor, tried to avoid technology companies before Apple. In 2016, Berkshire first bought the stock under the influence of Ted Weschler and Todd Combs, Buffett's investing lieutenants. As the years passed, Buffet increased the stake in Apple to make it the biggest and called the iPhone maker the most important business after his cluster of insures.
Buffett has been selling a lot of his biggest company stocks lately. Recently, his second biggest stake was downsized with $3.8 billion worth of bank shares after a 12-day-selling spree.
We expect to see more news about stock shares and we wait for new reports abouts the Warren Buffett sellings.
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