Warren Buffett reduced Berkshire Hathaway's stake in Apple for tax management and potential market shifts.

From Nasdaq: 2024-08-09 17:09:00

In the second quarter, Berkshire Hathaway CEO Warren Buffett reduced its stake in Apple from $135.4 billion to $84.2 billion. This move was likely motivated by tax management, with Buffett hinting at concerns about potential capital gains tax increases. Additionally, Apple’s high valuation and slowing growth may have influenced the sale.

The sale of Apple shares helped Berkshire Hathaway increase its cash reserves to $272 billion, up from $163 billion at the start of the year. This move could position the company to take advantage of potential market sell-offs or make other strategic investments. Berkshire has not significantly reduced its other top holdings, indicating a specific focus on Apple.

Despite the sale, Apple remains Berkshire’s largest holding after the second quarter. Investors can take comfort in Buffett’s past praise for the company. While the reasons behind the sale remain speculative, Berkshire Hathaway’s ongoing portfolio management strategy and potential market shifts may have played a role in the decision.

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