Warren Buffett’s Berkshire Hathaway Slashes Apple Stake, Amasses $325 Billion Cash Pile
Staff Editor Berkshire Hathaway Continues to Reduce Apple Stake, Cash Reserves Soar
Warren Buffett’s Berkshire Hathaway has further reduced its stake in Apple during the third quarter of 2024, continuing a trend that has seen the company decrease its Apple holdings by two-thirds over the past year. This strategic move has contributed to a significant increase in Berkshire’s cash reserves, which have now reached a staggering $325 billion.
The latest financial reports reveal that Berkshire Hathaway’s investment in Apple has dwindled to just under $70 billion, a stark contrast to the $174.3 billion invested at the end of 2023. This reduction aligns with the company’s broader strategy of divesting large holdings over the past year.
Berkshire’s growing cash stockpile is not solely attributed to the Apple sell-off. Earlier this year, the company sold approximately $10 billion worth of Bank of America holdings, further bolstering its liquid assets. Notably, no share buybacks were reported in the third quarter of 2024, indicating a focus on cash accumulation.
While Berkshire Hathaway has not officially stated the reasons behind its decision to sell Apple shares, Warren Buffett hinted at potential tax motivations during a recent Berkshire annual meeting. Speculation suggests that the anticipation of increased capital gains tax by the US government may be influencing the company’s investment decisions.
This cautious approach amid potential tax changes reflects Buffett’s renowned strategic foresight. The substantial increase in cash reserves positions Berkshire Hathaway favorably for future investment opportunities, while potentially signaling broader market or economic considerations by the “Oracle of Omaha.”
As investors and market analysts closely watch Berkshire’s moves, the continued reduction in Apple’s stake and the accumulation of cash reserves may have far-reaching implications for market trends and investment strategies in the coming months.
