From CNBC: 2024-08-05 08:05:28

Warren Buffett cuts Apple stake by half, causing tech stock to plummet. Berkshire Hathaway reveals $84.2 billion holding at end of second quarter. Buffet offloaded $75 billion in equities, raising cash pile to $277 billion. He also began selling Bank of America shares in July.

Buffett initially sold 13% of Apple stake in first quarter for tax-saving purposes. Speculation arises whether tax was only motivating factor behind second-quarter sale. Buffett’s lieutenants Weschler and Combs influenced Berkshire’s 2016 decision to purchase Apple, eventually making it the conglomerate’s largest holding.

Apple soared 23% in second quarter due to enthusiasm surrounding its artificial intelligence capabilities. Berkshire’s massive Apple stake triggered concerns over portfolio management. Global market correction fears heighten amid economic slowdown worries. Buffet positions Berkshire with record cash reserves at $277 billion.

Read more: Apple shares drop 7% after Warren Buffett’s Berkshire Hathaway slashes stake by half