Time: 2024-08-04
Warren Buffett 's Berkshire Hathaway made headlines by cutting its stake in tech giant Apple by almost half , as revealed in the second quarter earnings report . The value of Berkshire Hathaway 's holdings in Apple dropped significantly , from 790 million shares to 400 million shares , representing 4.2 billion at the end of the quarter . This move is unusual for Buffett , who is known for holding onto stocks for long periods of time . Berkshire Hathaway has previously reduced its position in Apple , which has a market cap exceeding .3 trillion . In the final months of 2023 and the first quarter of 2024 , Berkshire Hathaway had already sold off portions of its Apple stock.
Berkshire Hathaway also reported a record cash pile of nearly 77 billion for the second quarter , with approximately 89 billion in cash and equivalents in the first quarter . The company sold off 5.5 billion in stock during the second quarter , including reductions in its second - largest position in Bank of America to 1.1 billion . The earnings report highlighted that the majority of Berkshire 's fair value is concentrated in just five companies , with Apple being one of the key holdings at 4.2 billion.
The cash pile of Berkshire Hathaway surged to a record 76.9 billion in the last quarter , following Warren Buffett 's decision to sell off a significant portion of his investments , notably in Apple . The increase in the cash hoard was substantial compared to the previous record set in the first quarter of 2024 at 89 billion . Buffett has been consistently selling stocks for seven quarters , with a sharp increase in the second quarter , shedding over 5 billion in equities . Berkshire Hathaway 's operating earnings saw a 15 % jump to 1.6 billion in the second quarter , driven by strong performance in its fully - owned businesses , such as auto insurer Geico.
Despite the substantial cash reserve , Buffett expressed caution due to high market prices . He emphasized the importance of investing in businesses with low risk and high return potential . Berkshire Hathaway 's buyback of its own stock decreased significantly in the second quarter , reflecting a conservative approach to capital deployment . The market has experienced significant growth , with the S&P 500 reaching record levels amid concerns about inflation and economic slowdown . Recent data showing weak economic indicators have led to investor unease , particularly regarding the tech sector 's valuations.
The financial moves by Warren Buffett and Berkshire Hathaway reflect a strategic shift in investment philosophy and a cautious approach in a volatile market environment . As one of the most prominent investors in the world , Buffett 's decisions often influence market trends and investor sentiment . The reduction in the Apple stake and the record cash pile indicate a calculated approach to managing investments amidst changing market dynamics . Investors will closely monitor Berkshire Hathaway 's future actions to gauge the impact on the broader market and the tech sector , given its significant holdings in key companies like Apple.
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