Berkshire trims Apple stake, holds record $373 billion in cash
Warren Buffett's fund - Berkshire Hathaway - sold nearly half its Apple shares over the last quarter. At the same time, it reported holding a record amount of cash: CAD 373 billion.
According to CNBC, Berkshire Hathaway held Apple shares worth CAD 113.1 billion at the end of the second quarter. This means Buffett's fund sold more than 49% of its holdings in the tech giant. Even after this sell-off, Apple remains the most prominent position in Berkshire's portfolio.
Buffett's fund has a huge amount of cash
Apple was not the only company whose shares Berkshire was selling. According to CNBC, the fund got rid of shares worth CAD 101 billion. This means Buffett's investment vehicle holds a record amount of cash: CAD 373 billion.
It's worth noting that Berkshire's first significant sale of Apple occurred in the first quarter of 2024, and as reported at the time, it was related to tax issues. As Buffett explained then, the sale of some shares could be beneficial for the fund's investors if the US authorities raise capital gains taxes. However, CNBC notes that the sale scale may be driven by factors other than just tax reasons.
Berkshire Hathaway started buying Apple in 2016 and has been adding more of the giant's shares over the years. At one point, they represented half of the fund's entire portfolio. The current sell-off has affected not only Apple but also, for instance, Bank of America, where CAD 5.1 billion reduced the position.
All this happened before weak labour market data from the US came in, increasing fears of a recession. At the same time, investors are concerned about rising tensions between Iran and Israel. Additionally, on Monday, the Japanese stock market experienced its worst decline in years, and these declines also spread to other markets, including the cryptocurrency markets.
