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Warren Buffet drops Apple stocks
(MENAFN) In a significant shift for his investment strategy, Warren Buffett’s Berkshire Hathaway has drastically reduced its stake in Apple Inc., according to a quarterly earnings report released on Saturday. The renowned investor’s firm has divested nearly half of its Apple holdings since the beginning of the year, marking a substantial departure from its previously substantial investment in the tech giant.
As of June 30, the value of Berkshire Hathaway’s investment in Apple had diminished from USD174.3 billion at the end of the previous year to USD84.2 billion. This move follows the sale of approximately 10 million Apple shares, equivalent to about 1percent of its total holding, in the final quarter of the last year. Despite this notable reduction, Apple remains the largest single investment in Berkshire Hathaway's portfolio.
Buffett, known for his long-term investment approach and his previous enthusiasm for Apple, had previously described the tech company as a cornerstone of his conglomerate's investment strategy. During the Berkshire Hathaway annual meeting in May, he expressed confidence that Apple would continue to be a major holding. However, Buffett has also hinted that his recent decision to offload Apple shares was influenced by tax considerations and his intention to bolster Berkshire’s cash reserves.
The report reveals that Berkshire Hathaway sold off USD75.5 billion in stock during the second quarter, which led to an unprecedented increase in its cash holdings. The company’s cash reserves surged to a record USD277 billion, up from USD88 billion at the start of 2024. This marked the seventh consecutive quarter in which Berkshire Hathaway sold more stock than it acquired, with cash now constituting approximately 30percent of the company’s market value, which exceeds USD900 billion.
Analysts interpret this accumulation of cash as a possible indication of Buffett’s concerns regarding the United States economic outlook. The dramatic shift in investment strategy underscores a significant change in Buffett's approach, raising questions about his future investment plans and his view of the broader economic landscape.
As of June 30, the value of Berkshire Hathaway’s investment in Apple had diminished from USD174.3 billion at the end of the previous year to USD84.2 billion. This move follows the sale of approximately 10 million Apple shares, equivalent to about 1percent of its total holding, in the final quarter of the last year. Despite this notable reduction, Apple remains the largest single investment in Berkshire Hathaway's portfolio.
Buffett, known for his long-term investment approach and his previous enthusiasm for Apple, had previously described the tech company as a cornerstone of his conglomerate's investment strategy. During the Berkshire Hathaway annual meeting in May, he expressed confidence that Apple would continue to be a major holding. However, Buffett has also hinted that his recent decision to offload Apple shares was influenced by tax considerations and his intention to bolster Berkshire’s cash reserves.
The report reveals that Berkshire Hathaway sold off USD75.5 billion in stock during the second quarter, which led to an unprecedented increase in its cash holdings. The company’s cash reserves surged to a record USD277 billion, up from USD88 billion at the start of 2024. This marked the seventh consecutive quarter in which Berkshire Hathaway sold more stock than it acquired, with cash now constituting approximately 30percent of the company’s market value, which exceeds USD900 billion.
Analysts interpret this accumulation of cash as a possible indication of Buffett’s concerns regarding the United States economic outlook. The dramatic shift in investment strategy underscores a significant change in Buffett's approach, raising questions about his future investment plans and his view of the broader economic landscape.
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