When Berkshire Hathaway is a multinational conglomerate holding company. ( BRK.A 0.61% ) ( BRK.B 0.54% ) When the company released its financial results for the second quarter a few weeks back, shareholders discovered that CEO Warren Buffett and his associates had offloaded a significant position. large part of its substantial investment in a major technology company Apple ( AAPL 1.35% ) Investors were unaware of the precise amount of Apple stock that Berkshire had sold and retained.
Berkshire disclosed owning $84.2 billion worth of Apple stock as of June 30. Based on the stock price at that time, it seemed that Berkshire had sold approximately half of its Apple shares.
Investors are now aware of the precise amount. As per the most recent 13-F filing from Berkshire, the company offloaded 389,368,450 Apple shares in the second quarter. Currently, Berkshire holds a total of 400,000,000 shares in the major tech company.
What was the reason for Berkshire Hathaway selling off a large amount of its Apple shares?
Investors lack knowledge about the subject. exact The amount at which Berkshire Hathaway sold its shares in Apple suggests that the company likely received approximately $82 billion from the sale, given Apple’s current market value. The reason behind Warren Buffett’s decision to sell the stock is unclear, but it is highly probable that he personally approved the significant sale.
Nevertheless, there are a couple of possible explanations, which may include but are not restricted to:
- Making a profit: Berkshire’s investment in Apple had increased by over 400%, so Buffett may have considered selling some of the stock to lock in profits.
- Decreasing the amount of a substance in a solution. Buffett is not afraid to have a focused portfolio, however, by the conclusion of 2023, Apple accounted for a significant portion. half the collection of stocks owned by Berkshire Hathaway.
- Raising cash: Following the sale of Apple, Berkshire accumulated $277 billion in cash and Treasuries. Buffett is anticipating a possible recession and is aiming to have sufficient capital on hand for investment opportunities.
For whatever cause, Berkshire’s stock portfolio is now less concentrated compared to before. massive a substantial amount of money available for use
