Apple went into the holiday quarter with improving revenue momentum, with Berkshire Hathaway showing confidence in the tech giant as its biggest holding. Berkshire’s upcoming CEO handoff to Greg Abel may lead to a shift in equity portfolio strategies, with recent selling of Apple shares possibly aimed at managing an oversized position. Despite this, Apple’s positive guidance for the holiday quarter indicates stronger growth.

Berkshire Hathaway’s stake in Apple is currently worth over $65 billion, making it the largest holding in the conglomerate’s equity portfolio. While recent selling may be due to concentration risk, Berkshire’s substantial cash reserves give Abel flexibility to deploy capital strategically. With Apple’s business showing steady growth and positive outlook, Berkshire may reconsider further selling under Abel’s leadership.

Apple’s improving business performance, highlighted by an 8% revenue increase in the fourth quarter of fiscal 2025, sets a positive tone for the holiday season. Expectations of 10-12% revenue growth in the holiday quarter align with CEO Tim Cook’s optimistic outlook on demand for iPhone products. With a potential change in Berkshire’s approach to tech stocks under Abel, continued selling of Apple shares may be less likely.

Investors looking at Berkshire Hathaway should consider the company’s recent selling of Apple shares amid positive business performance. While Berkshire remains confident in Apple’s long-term prospects, potential shifts in investment strategies under Abel’s leadership could impact the conglomerate’s equity portfolio composition. For insights on top stocks to buy now, consider recommendations from the Motley Fool Stock Advisor team for potential high returns.

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