Warren Buffett’s Berkshire Hathaway has sold $174 billion in stocks in the last 30 months, including stakes in Apple and Bank of America. The company expects a $13.5 billion payout from an investment in 2025. Buffett’s strategy of investing in undervalued businesses has led to impressive returns, with Berkshire stock growing at a compound annual rate of about 20% since 1965.

Buffett has been trimming his positions in Apple and Bank of America due to high valuations. While Apple remains the largest holding in Berkshire’s portfolio, its forward P/E of 29 has led Buffett to sell over two-thirds of the stake. Bank of America, the second-largest holding, saw a 39% reduction in stake. Valuation concerns drove these decisions.

Berkshire Hathaway’s massive stock sales have led to a cash influx, with $314.1 billion in U.S. Treasury bills on its balance sheet. The company expects to collect $13.5 billion in 2025 from the 4.3% yield on the bonds. Buffett prefers investing in equities, but high valuations in the market have limited his options for new investments.

Investors considering Berkshire Hathaway should note that the Motley Fool Stock Advisor team did not include it in their list of top 10 stocks. The team’s picks have historically outperformed the market significantly, offering better growth opportunities. Before investing, consider the potential returns from their recommended stocks in the coming years.

Read more at Nasdaq: Warren Buffett Sold Apple and Bank of America in Favor of This Boring Investment Offering a 4.3% Yield