Warren Buffett, CEO of Berkshire Hathaway, has been selling off large portions of the company’s stakes in Apple and Bank of America, redirecting the funds into a single high-yield investment. Buffett is set to retire by the end of 2025, leaving Greg Abel in charge of the $1 trillion conglomerate. Berkshire’s stock sales have surpassed purchases by over $183 billion in the last 12 quarters, with $320.5 billion invested in U.S. Treasury bills. Buffett continues to prioritize liquidity and safety over yield in short-term investments. Berkshire recently made a $9.7 billion investment in Occidental Petroleum’s OxyChem subsidiary.

Buffett’s stake in Apple, one of Berkshire’s biggest winners, has been reduced by nearly 70% since late 2023, with the stock accounting for over 50% of the company’s equity portfolio at one point. Similarly, Berkshire has been selling off Bank of America shares, reducing its stake by over 60% since mid-2024. The bank’s valuation has increased amid the Federal Reserve’s interest rate easing cycle, trading at 1.8-times tangible book value. Berkshire’s excess cash from stock sales has gone into a single high-yield investment holding, with $320.5 billion invested in U.S. Treasury bills.

Despite the significant reduction in Apple and Bank of America stakes, Buffett continues to position Berkshire’s portfolio for success. The company’s stock sales have exceeded purchases by over $183 billion in the last 12 quarters, with the majority of excess cash invested in U.S. Treasury bills. Berkshire’s liquidity remains a top priority, with Buffett preferring safety over yield in short-term investments. Incoming CEO Greg Abel will inherit a substantial cash stockpile, providing ample dry powder for potential future investments.

Read more at Nasdaq: Warren Buffett Has Been Selling Apple and Bank of America Stock and Piling Into This High-Yield Investment Instead