Warren Buffett's Berkshire Hathaway Slashes Apple Stake by Nearly Half

Warren Buffett's Berkshire Hathaway dumps $75.5 billion worth of stock and halves Apple stake

Berkshire Hathaway Inc. slashed its stake in Apple Inc. by almost 50% as part of a massive selling spree in the second quarter that sent billionaire Warren Buffett's cash pile to a record $276.9 billion. In all, Berkshire sold $75.5 billion worth of stock during the second quarter on a net basis, the Omaha, Nebraska-based conglomerate reported Saturday. Operating earnings rose to $11.6 billion, up from $10 billion for the same period a year ago. Berkshire has struggled to find ways to deploy its mountain of cash in a sluggish deal environment. At the firm's annual shareholder meeting in May, Buffett said he wasn't in a rush to spend "unless we think we're doing something that has very little risk and can make us a lot of money." Buffett was unloading shares as the S&P 500 stock index rallied, setting a record high in mid-July, though the index has declined in each of the past three weeks on concern the artificial intelligence euphoria was overdone. On Friday, weak labor data underscored the risk of an economic downturn, and the S&P dipped 1.8%. Regulatory filings also indicate Berkshire trimmed its stake in Bank of America Corp. in the second quarter, with the company reporting a $41.1 billion stake. Berkshire bought back about $345 million of its own shares during the quarter, the lowest amount since the company changed its buyback policy in 2018. Cupertino, California-based reported this week that sales to China fell 6.5% to $14.7 billion in the third quarter, missing the $15.3 billion projection from Wall Street. The results rekindled fears that Apple is losing ground in one of its most important overseas markets. Apple is up against fiercer competition in the region, and the government has reined in the use of foreign technology in some workplaces. Chinese economic growth also has worsened. Apple attributed much of the decline to the effects of a strong dollar, saying that the underlying business in China is actually healthier than before. Three months ago, executives said the slowdown was less about an underperforming iPhone and more about weak sales of other products. Apple's shares have gained this year, lifted by investors' hope that new AI technology would help boost sales. But on July 28, Bloomberg News reported that Apple's upcoming AI features will arrive later than anticipated, missing the initial launch of its upcoming iPhone and iPad software overhauls but giving the company more time to fix bugs. The company is planning to begin rolling out Apple Intelligence to customers as part of software updates coming by October, according to people with knowledge of the matter.

Elon Musk Says Warren Buffett Is 'Clearly Expecting A Correction' After Berkshire Sold Nearly Half Of Its Apple Stock - Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA)

Tesla Inc. TSLA and SpaceX CEO Elon Musk has commented on Warren Buffett-led Berkshire Hathaway, Inc.'s BRK BRK decision to sell about half its stake in Apple Inc. AAPL. What Happened: Over the weekend, a user on X, formerly Twitter, shared the news of Berkshire accumulating a cash reserve of almost $277 billion on the platform. The user humorously suggested that Buffett could make daring, all-in investments with this cash reserve, and acquire any of these companies: Netflix, Salesforce, Toyota, Adobe, and Hermes. In response to the user, Musk said, "He [Buffett] is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills." See Also: Crypto Industry To Meet With White House Officials, Even As Trump Promises To Reverse Biden Administration's Crackdown On Bitcoin, Ethereum And Other Cryptocurrencies The tech mogul also criticized the Federal Reserve for not lowering interest rates, suggesting that the current rates are too high. "The Fed needs to drop rates. They have been foolish not to have done so already," he stated. Why It Matters: Circuit breakers were triggered for Japan's TOPIX index, halting trading as the index dropped over 6%, leading to urgent stabilization measures on Sunday night. The broader Asia-Pacific region saw declines, with the MSCI AC Asia Pacific Index falling 2%, Japan's Nikkei 225 plummeting 5.60%, and South Korea's KOSPI index dropping 4%. This continued a trend from Friday, when Japan's Nikkei 225 and TOPIX both fell over 5% and 6%, respectively. In the U.S., markets faced significant losses on Friday due to a weaker-than-expected July jobs report, with the Nasdaq dropping over 10%, and the S&P 500 and Dow decreasing by 5.7% and 3.9%, respectively. At the time of writing, Dow Jones Industrial Average futures fell by 0.81%, while S&P 500 and Nasdaq-100 futures dipped 1.43% and 2.4%. Notably, Berkshire Hathaway's second-quarter net earnings fell year-over-year due to a decline in investment gains, despite an increase in operating earnings. The company continued to offload its stake in Apple during this period. In the second quarter, net earnings experienced a 15.50% decline year-over-year, dropping from $35.91 billion to $30.35 billion. On the other hand, operating earnings -- reflecting income from the company's portfolio entities -- increased by 15.48%, reaching $11.60 billion. Gains from the investment portfolio saw a significant decrease of 27.52%, falling to $18.75 billion. Meanwhile, Berkshire's swelling cash position has also led to speculation on social media about potential investments, with some Tesla fans hoping that Buffett would invest in the electric vehicle maker's stock. Price Action: On Friday, Berkshire Hathaway Inc Class A BRK shares closed 0.9% lower and the company's Class B shares ended the regular session down 0.8%. Apple registered a 0.7% upside and ended the previous trading week at $219.86. Read Next: Cathie Wood's Ark Invest Sells $14.7M Worth Of Coinbase Shares And $8.5M Worth Of Palantir Stock -- Also Sells Robinhood Shares But Loads Up On AMD Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Warren Buffett's Berkshire Hathaway sold nearly half its stake in Apple

The Omaha-based conglomerate disclosed in its earnings filing that its holding in the iPhone maker was valued at $84.2 billion at the end of the second quarter, suggesting that the Oracle of Omaha offloaded a little more than 49% of the tech stake. Even after the selling Apple remains the largest stock stake by far for Berkshire. The Apple share sale comes amid a broader pattern of selling by Buffett in the second quarter as Berkshire unloaded more than $75 billion in equities in the period, raising the conglomerate's cash fortress to a record $277 billion. Buffett had trimmed the Apple stake by 13% in the first quarter and hinted at the Berkshire annual meeting in May that it was for tax reasons. Buffett noted that selling "a little Apple" this year would benefit Berkshire shareholders in the long run if the tax on capital gains is raised down the road by a U.S. government wanting to plug a climbing fiscal deficit. But the magnitude of this selling suggests it could be more than just a tax-saving move. After declining in the first quarter on concerns it was falling behind on artificial intelligence innovation, Apple shares took off in the second quarter, gaining 23% to a new record as it gave more detail to investors about its future in artificial intelligence. It won't be clear exactly why Buffett is selling down the holding Berkshire first bought more than eight years ago, whether company reasons, market valuation or because of portfolio management concerns (Buffett typically doesn't want a single holding to grow too large). Berkshire's Apple holding was once so big that it took up half of its equity portfolio. The 93-year-old investor largely avoided technology companies for most of his career before Apple. Berkshire began buying the stock in 2016 under the influence of Buffett's investing lieutenants Ted Weschler and Todd Combs. Over the years, Buffett grew so fond of Apple that he increased the stake drastically to make it Berkshire's biggest and called the tech giant the second-most important business after his cluster of insurers. Buffett has been on a bit of a selling spree as of late with his top holdings. Buffett recently starting downsizing his second biggest stake -- Bank of America, shedding $3.8 billion worth of the bank shares after a 12-day selling spree. Overall, the quarterly report showed Buffett dumping stock last quarter, which saw the S&P 500 rise to a record in anticipation of a "soft landing" for the U.S. economy. That soft landing was called into question this week with Friday's weaker-than-expected July jobs report.

Why did Warren Buffett dump Apple stock? He could be managing risk or raising cash to snap up bargains in a recession

To some, Berkshire Hathaway Inc.'s gutting of its Apple Inc. stake could be interpreted as a lack of conviction in the iPhone maker's growth story. But many on Wall Street are urging investors to look past the news and stay calm. The Warren Buffett-led conglomerate revealed Saturday that it sold almost half of its position in the tech giant during the second quarter. Its stake now stands at roughly $84 billion, down from about $140 billion at the end of March. The selling took place during a torrid run in the stock market that sent Apple shares 23% higher and pushed the S&P 500 from one record to the next. Since 2016, when Warren Buffett first disclosed its stake in Apple, its shares have soared almost 900% as the company cemented its grip on the industry, delivering Berkshire billions of dollars worth of unrealized profits along the way. "Buffett's reduction of his Apple stake is merely about risk management," said Joe Gilbert, senior portfolio manager at Integrity Asset Management. "If there were any concerns about the longer-term viability of Apple, Buffett would have exited the entire position. Similar to Berkshire's other stock position reductions, Buffett has meaningful unrealized gains." Berkshire's portfolio reveal comes just days after Apple released its own quarterly results, which showed a return to revenue growth and signaled that new AI features will boost iPhone sales in the coming quarters. Apple shares were steady after the earnings report and ultimately ended the week higher despite the broader selloff. While the investment strategy of Buffett -- long known as the Oracle of Omaha -- is hard to ignore, Berkshire's stake in Apple had gotten so large in recent years that some investors had begun to wonder whether the firm would have to trim its position to balance out its holdings. Even after the unwind, Apple remains Berkshire's largest single position. "If you've got this outsized position you take some profits and you reduce some of your concentration risk," said Cathy Seifert, a research analyst at CFRA. "They still have a fairly concentrated portfolio," she added. It's also not the first time Berkshire has cut its stake in Apple. At its annual meeting in May, the firm revealed that it had reduced its position during the first quarter of the year. At the time, Buffett hinted to investors that tax implications may have played a role in the sale. Representatives for Apple and Berkshire Hathaway didn't respond to requests for comment outside of regular business hours on Sunday. The latest announcement comes amid broader concern about the potential of an economic downturn ahead. Worse-than-expected jobs data on Friday stoked fears the Federal Reserve may have waited too long to start reducing interest rates, sending the Nasdaq 100 Index into a technical correction and the Cboe Volatility Index toward 25. Megacap peers including Microsoft Corp., Amazon.com Inc. and Alphabet Inc. have all tumbled from record highs reached in early July. In total, Nasdaq 100 members have shed more than $3 trillion in value over that stretch with both Nvidia Corp. and Tesla Inc. each seeing declines of more than 20%. Apple, meanwhile, is down about 6% from its all-time high. It's possible that Berkshire, like an increasing number of investors, wants to see more proof that Apple's AI investments will pay off with revenue growth and isn't convinced that's happening fast enough, according to Brian Mulberry, client portfolio manager at Zacks Investment Management. Apple's valuation multiple -- at 33 times future profits as of mid-July -- was 11 points higher than that of the broader S&P 500, a gap that was last seen in the aftermath of the pandemic and the financial crisis, data compiled by Bloomberg show. But despite the valuation premium, Mulberry thinks it still makes sense for investors to own Apple shares. "They're still in a healthy balance sheet position and they're still going to grow earnings faster than the broader market," he said. Others, including Wedbush analyst Dan Ives, point to Apple's brand loyalty and future growth - it's on the cusp of what he thinks is a major upgrade cycle that will drive revenue growth in 2025 and 2026. "While some could read this as confidence worry, Apple just delivered a robust quarter with a massive AI driven super cycle ahead and we do not view this as the time to hit the exit button," Ives said. Of course, Apple isn't the only stake that Berkshire has trimmed lately -- it's been unloading sharesof Bank of America Corp., cutting its position by 8.8% since mid-July. Some see that as a sign that Buffett doesn't see any individual problems with either company, but is instead betting that the US consumer and broader economy are set to weaken. "Buffett may feel we're about to go into a recession, so by raising cash now he will be able to buy companies cheap later on," said Jim Awad, senior managing director at Clearstead Advisors. "He may smell an opportunity coming."

Buffett's Berkshire Hathaway Cuts Stake in Apple by Half

As the Financial Times (FT) reported Saturday (Aug. 3), this reduction came as Buffett sold off $76 billion in stocks. His company, Berkshire Hathaway, reduced its Apple holdings by more than $50 billion to $84.2 billion during the second quarter, the report said. The data indicates that Berkshire sold around 390 million Apple shares, or about half of its stake, per calculations by the FT. Selling the stocks gives Berkshire a record $277 billion in cash holdings, the report said. Buffett began scaling back Berkshire's Apple stake last year, and in May reduced it again by around 13%. The billionaire indicated at the time that the sale was connected to his wish to avoid a higher tax bill if rates go higher to cover an increasing U.S. fiscal deficit. "It doesn't bother me in the least to write that check and I would really hope with all that America's done for all of you, it shouldn't bother you that we do it and if I'm doing it at 21% this year and we're doing it a little higher percentage later on, I don't think you'll actually mind the fact that we sold a little Apple this year," Buffett said. The sale came on the heels of Apple's quarterly earnings report, which included some discussion of the company's coming artificial intelligence (AI) features, dubbed Apple Intelligence. "It will transform how users interact with technology, from writing tools to help you express yourself to image playground -- which gives you the ability to create fun images and communicate in new ways -- to powerful tools to summarize and prioritize notifications," CEO Tim Cook said. As Apple Intelligence evolves, he said, the company is weaving ChatGPT into experiences within iPhone, Mac and iPad, he said, adding that AI has "extraordinary possibilities." During the question-and-answer session with analysts, Cook argued that Apple Intelligence will offer a "compelling" reason for users to upgrade their devices. As PYMNTS wrote, investor reaction to the report indicated "what might be termed a muted response to at least some of the numbers and the commentary. ... Call it, perhaps a 'show me' reaction on the part of investors, particularly where AI is concerned."

'Warren Crushed Apple' Says Jim Cramer As Buffett Cuts Stake In Tech Giant By Nearly Half: Here's How Much Dividend Income Berkshire Forgoes - Apple (NASDAQ:AAPL)

Berkshire Hathaway's BRK BRK 10-Q report for the second quarter showed the Warren Buffett-led firm significantly reducing its stake in tech giant Apple, Inc. AAPL. What Happened: Berkshire said the fair value of its Apple holding at the end of the second quarter was $84.2 billion, down about 38% from $135.4 billion at the end of the first quarter. Looking at the reduction from the perspective of number of shares, the math works as follows: Berkshire had 789.37 million shares of Apple at the end of the March quarter (according to 13F filing) Apple's average stock price for the June quarter was $186.14 and the stock ended the quarter at $210.62. The $84.2 billion worth of stake Berkshire disclosed in the 10-Q for the second quarter suggests Berkshire may have been left with 399.77 million shares (taking the closing price for the quarter). See Also: Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500. The math suggests a 49.36% reduction in Apple stake by Berkshire in terms of the number of shares. Apple, which reported quarterly results Thursday, said its board declared a quarterly cash dividend of 25 cents per share, payable on Aug. 15 to shareholders of record as of Aug. 12. The 390-million shares Berkshire is estimated to have sold would have fetched the Buffett-led firm a dividend income of $97.5 million. If Berkshire held onto the 789.37 million shares it owned at the end of the March quarter, it could have reaped a dividend windfall of a little over $197 million. Don't Miss: America's construction sites are desperate for Robots -- here's how to invest in a house-printing startup who's making them and be a part of a $16 trillion industry. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Cramer Explores Motive: Commenting on Berkshire's action, CNBC Mad Money host Jim Cramer said Buffett's decision may have been prompted by Apple's China weakness. "Warren crushed Apple and the story is being viewed as 'China risk," he said in a post on X, formerly Twitter. "Cramer apparently doesn't subscribe to the idea. "Did anyone bother to read or see how well Apple did in China this q? Probably their relative best. Again, not defending this market or the stories, just offering a non-panicked perspective," he said. Apple reported a 6.54% year-over-year drop in Greater China revenues in the June quarter, and sequentially, the drop was a steeper 10%. CEO Tim Cook clarified on the call the weakness was due to macro conditions and domestic competition. Incidentally, when Berkshire trimmed its Apple position by 13% in the March quarter, Buffett said the move was to raise cash during times of economic uncertainty and to foot its federal tax bill. Read Next: Don't miss out on the next Nvidia - you can invest in the future of AI for only $10. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." -- Here's how to earn easy passive income Market News and Data brought to you by Benzinga APIs

Warren Buffett 'Doesn't Understand Technology' Says Tesla Investor Ross Gerber Lamenting Sale Apple Share Sale Ahead Of 'AI Revolution' - Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC)

Ross Gerber, the CEO of Gerber Kawasaki Wealth and Tesla Inc. investor, recently criticized Warren Buffett for his lack of understanding of technology, which he believes led to the sale of Apple Inc. AAPL shares before the AI revolution. What Happened: On Saturday, Gerber took to X to express his views on Buffett's decision to sell Apple shares, which he believes was a mistake for long-term investors. This statement was made shortly after Berkshire Hathaway BRK BRK, Buffett's firm, significantly reduced its stake in Apple. "Warren Buffet doesn't understand technology, thats for sure. Selling Apple before the AI revolution is an error for long term investors," Gerber wrote See Also: Elon Musk Says Warren Buffett Is 'Clearly Expecting A Correction' After Berkshire Sold Nearly Half Of Its Apple Stock Why It Matters: The criticism from Gerber comes just days after Buffett significantly reduced Berkshire Hathaway's stake in Apple. According to a 10-Q report, the value of Berkshire's Apple holdings dropped by nearly 38% from the first to the second quarter of 2024. This reduction has led to a loss of substantial dividend income for Berkshire. Additionally, both Bill Gross and Buffett have hinted at a bearish outlook for the stock market, advising investors to consider selling during recoveries rather than buying dips. This sentiment was echoed by Elon Musk, who suggested that Buffett's actions indicate an expectation of a correction. Musk wrote, "He is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills." Furthermore, Berkshire Hathaway has been actively selling other significant holdings, including shares of Bank of America Corp BAC, amounting to $3.8 billion since mid-July. This series of sales suggests a strategic shift in Buffett's investment approach, focusing on liquidity and potential market downturns. Read Next: Researchers Identify 'Trump Dump' Effect: Ex-President Is Already Causing Deep Stock Losses In Companies And Industries He Targets Image via MidJourney This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Warren Buffet's Berkshire Hathaway sells half its Apple stock | TechCrunch

Warren Buffett's Berkshire Hathaway cut its Apple holding by around half, to $84.2 billion, according to an SEC filing. While Apple remains the firm's largest stock holding by far, Buffett had already reduced its stake by 13 percent earlier this year, hinting that he didn't mind selling "a little Apple" for tax reasons. Berkshire Hathaway made huge profits on the sale, according to calculations by The Financial Times; Buffett had largely avoided tech investments before beginning to buy Apple stock in 2016. He's has been selling off other stocks as well, for example selling $3.8 billion of shares in Bank of America. Apple announced its third quarter earnings on Thursday, with iPad growth offering a bright spot as global iPhone sales declined for the second consecutive quarter, due in part to competition in China from companies like Huawei. CEO Tim Cook said the company has been diverting resources to prepare to launch Apple Intelligence -- a suite of AI features that it plans to release in the fall.

Berkshire Hathaway sold half of its Apple stock

Within Berkshire Hathaway's second-quarter earnings report was a telling stat: $84.2 billion. That number -- the Warren Buffett-led conglomerate's stake in Apple -- was noticeably a lot less than the $174.3 billion stake it had in the tech giant at the start of this year -- 50% less to be exact. The big selloff continues a trend for Berkshire Hathaway. The company has reduced its stake in Apple for three consecutive quarters now, and its latest move could send ripples through the stock market. Apple still is Berkshire Hathaway's biggest stock investment, followed by Bank of America Corporation ($41.1 billion) and the American Express Company ($35.1 billion), as of June 30. But earlier this year during a question-and-answer session at Berkshire's annual shareholder conference, Buffett said that it's "extremely likely" that Apple remains Berkshire's largest common stock holding -- and that it will stay that way unless something dramatic happens. "Unless something really extraordinary happens, we will own Apple, and American Express, and Coca-Cola when Greg takes over this place," the 93-year-old Buffett said at the time, referring to Greg Abel, his handpicked successor. Last week, Apple reported sales of nearly $86 billion for the quarter that ended on June 29, higher than the $84.4 billion forecasted by analysts polled by FactSet. Investors are most interested in Apple's AI strategy, which the company revealed at its Worldwide Developers Conference in June. Apple shares, which lagged at the start of the year, jumped over 12% since the announcement of its suite of AI tools, called Apple Intelligence.

Berkshire's unprecedented wave of selling continues: Buffett dumps half of Apple shares amid AI bubble

When Berkshire's continued liquidation of its Bank of America stake was discussed, it was argued that the company's rising cash stocks only reflect its inability to find deals in the current overvalued and weak economic environment. Warren Buffett not only dumped Bank of America, but also quietly dumped his most iconic company: Apple. Berkshire sold a net $75.5 billion worth of shares in the second quarter (which ended June 30), most of which we now know came from Buffett's liquidation of half of his Apple shares. The company provided a snapshot of its top holdings, showing that on June 30 it held only $84.2 billion in Apple shares, down sharply from $135.4 billion on March 31 and $174.3 billion on Dec. 31, 2023. The rest of Berkshire's top holdings remained untouched The rest of Berkshire's top five holdings (, American Express, Coca Cola and Chevron) remained untouched in Q2. This means Buffett clearly decided it was time for to go. We have since learned that Buffett also began dumping a large portion of his shares in , where he is the largest shareholder, after the end of Q2. Berkshire's cash position increased by a record - with proceeds from the sale of making up the bulk of the new money - but the company also generated significant cash from its own operations, and in the second quarter Berkshire reported operating income of , up from in the same period a year ago. Berkshire's cash mountain has been growing for years Berkshire has struggled for years to find ways to deploy its mountain of cash in a slow deal environment and bemoaned the lack of low-cost opportunities. At the company's annual shareholder meeting in May, Buffett said he was not eager to spend money "unless we think we are doing something that is low-risk and can make us a lot of money." It now appears that not only was Buffett in no hurry to spend money, but, taking advantage of the AI bubble, he aggressively liquidated his largest position. What is perhaps most remarkable is when and how Buffett dumped half of his position: Berkshire managed to dispose of a stunning , or some 390 million shares, in at a time when the stock was rising rapidly in value, and especially after the melt-up following the (WWDC24). Was Buffett's move related to 's bizarre performance? One might also wonder if Buffett didn't have something to do with 's bizarre performance after the WWDC24 conference. As a reminder, the reflexive reaction to "earth-shattering" unveiling of a chatGPT Siri was a huge flop, dumping the stock on the day of WWDC24. If you want access to all articles, enjoy our promo temporarily and subscribe here!

Apple Investors Urged to Stay Calm After Buffett Slashes Stake

(Bloomberg) -- To some, Berkshire Hathaway Inc.'s gutting of its Apple Inc. stake could be interpreted as a lack of conviction in the iPhone maker's growth story. But many on Wall Street are urging investors to look past the news and stay calm. The Warren Buffett-led conglomerate revealed Saturday that it sold almost half of its position in the tech giant during the second quarter. Its stake now stands at roughly $84 billion, down from about $140 billion at the end of March. The selling took place during a torrid run in the stock market that sent Apple shares 23% higher and pushed the S&P 500 from one record to the next. Since 2016, when Warren Buffett first disclosed its stake in Apple, its shares have soared almost 900% as the company cemented its grip on the industry, delivering Berkshire billions of dollars worth of unrealized profits along the way. "Buffett's reduction of his Apple stake is merely about risk management," said Joe Gilbert, senior portfolio manager at Integrity Asset Management. "If there were any concerns about the longer-term viability of Apple, Buffett would have exited the entire position. Similar to Berkshire's other stock position reductions, Buffett has meaningful unrealized gains." Berkshire's portfolio reveal comes just days after Apple released its own quarterly results, which showed a return to revenue growth and signaled that new AI features will boost iPhone sales in the coming quarters. Apple shares were steady after the earnings report and ultimately ended the week higher despite the broader selloff. While the investment strategy of Buffett -- long known as the Oracle of Omaha -- is hard to ignore, Berkshire's stake in Apple had gotten so large in recent years that some investors had begun to wonder whether the firm would have to trim its position to balance out its holdings. Even after the unwind, Apple remains Berkshire's largest single position. "If you've got this outsized position you take some profits and you reduce some of your concentration risk," said Cathy Seifert, a research analyst at CFRA. "They still have a fairly concentrated portfolio," she added. Read: Berkshire Cuts Apple Stake by Almost Half in Selling Spree (2) It's also not the first time Berkshire has cut its stake in Apple. At its annual meeting in May, the firm revealed that it had reduced its position during the first quarter of the year. At the time, Buffett hinted to investors that tax implications may have played a role in the sale. Representatives for Apple and Berkshire Hathaway didn't respond to requests for comment outside of regular business hours on Sunday. The latest announcement comes amid broader concern about the potential of an economic downturn ahead. Worse-than-expected jobs data on Friday stoked fears the Federal Reserve may have waited too long to start reducing interest rates, sending the Nasdaq 100 Index into a technical correction and the Cboe Volatility Index toward 25. Megacap peers including Microsoft Corp., Amazon.com Inc. and Alphabet Inc. have all tumbled from record highs reached in early July. In total, Nasdaq 100 members have shed more than $3 trillion in value over that stretch with both Nvidia Corp. and Tesla Inc. each seeing declines of more than 20%. Apple, meanwhile, is down about 6% from its all-time high. It's possible that Berkshire, like an increasing number of investors, wants to see more proof that Apple's AI investments will pay off with revenue growth and isn't convinced that's happening fast enough, according to Brian Mulberry, client portfolio manager at Zacks Investment Management. Apple's valuation multiple -- at 33 times future profits as of mid-July -- was 11 points higher than that of the broader S&P 500, a gap that was last seen in the aftermath of the pandemic and the financial crisis, data compiled by Bloomberg show. But despite the valuation premium, Mulberry thinks it still makes sense for investors to own Apple shares. "They're still in a healthy balance sheet position and they're still going to grow earnings faster than the broader market," he said. Others, including Wedbush analyst Dan Ives, point to Apple's brand loyalty and future growth - it's on the cusp of what he thinks is a major upgrade cycle that will drive revenue growth in 2025 and 2026. "While some could read this as confidence worry, Apple just delivered a robust quarter with a massive AI driven super cycle ahead and we do not view this as the time to hit the exit button," Ives said. Of course, Apple isn't the only stake that Berkshire has trimmed lately -- it's been unloading shares of Bank of America Corp., cutting its position by 8.8% since mid-July. Some see that as a sign that Buffett doesn't see any individual problems with either company, but is instead betting that the US consumer and broader economy are set to weaken. "Buffett may feel we're about to go into a recession, so by raising cash now he will be able to buy companies cheap later on," said Jim Awad, senior managing director at Clearstead Advisors. . "He may smell an opportunity coming." --With assistance from Ryan Vlastelica, Subrat Patnaik and Natalia Kniazhevich.

Berkshire Hathaway's Massive $277M Cash Hoard Rekindles Tesla Investment Chatter: Fund Manager Says 'Two Worlds Seldom Collide' - Apple (NASDAQ:AAPL), BYD (OTC:BYDDY)

Warren Buffett-led Berkshire Hathaway, Inc.'s BRK BRK second-quarter 10-Q report filed with the SEC showed that the investment holding company's cash position swelled to $277 million. The cash buildup sent social media into a tizzy, with some Tesla, Inc. TSLA fans fervently hoping that the investment guru would divert some of it into the electric-vehicle maker's stock. What Happened: "Buffett is a value investor. $TSLA is a growth stock," said The Future Fund LLC Managing Partner Gary Black in a post on X. Black, who is a Tesla bull, was referring to Buffett's investment rationale of picking up quality stocks trading at bargains, which is the premise behind value investing. Don't Miss: This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10. Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500. Don't miss out on the next Nvidia - you can invest in the future of AI for only $10. Growth stocks, on the other hand, are expected to generate above-market returns and these stocks trade at elevated price-earnings multiples. Their high valuations are justified only by the returns they can generate in the future. Despite Tesla stock's secular decline seen since late 2022, it still trades at an elevated forward P/E multiple of 84.75, according to the Yahoo Finance database. Source: Benzinga Pro data See Also: America's construction sites are desperate for Robots -- here's how to invest in a house-printing startup who's making them and be a part of a $16 trillion industry. Never The Twain Shall Meet: "The two worlds seldom collide," said Black in the post, referring to Buffett's ideology and Tesla's stock characteristic. Clarifying further, the fund manager said Buffett first bought Apple, Inc. AAPL stock when it traded at less than 12 times earnings and BYD Co. Ltd BYDDY BYDDY stock when it was trading at less than 10 times earnings. Tesla "isn't his type [of] stock," said Black. Incidentally, Tesla CEO Elon Musk has in the past resented that Buffett and his trusted late lieutenant Charlie Munger had overlooked Tesla as an investment option. Musk has mentioned an unsuccessful meeting with Munger in 2009 regarding a potential Tesla investment. Every time Berkshire's massive cash position is being discussed on social media, the world's richest man has indirectly nudged Buffett to take a stake in Tesla. Buffett, while giving Tesla a snub, has admired Musk. "Elon is a brilliant, brilliant guy and I would say that he might score over a 100%," Buffett said at one Berkshire shareholder meeting. "He dreams about things and his dream have got a foundation." Tesla ended Friday's session down 4.24% at $207.67, according to Benzinga Pro data. Read Next: Here's the AI-powered startup that turns traders into influencers achieving 12% monthly growth - invest in it at only 10 cents per share. This city is the clear winner of Zillow's 2024 Home Value Forecast -- No surprise as the number of millionaires there grew by 75% in the last decade. Market News and Data brought to you by Benzinga APIs

World's 'biggest investor' has halved its stake in Apple, and this may be the reason - Times of India

The world's largest investment group Warren Buffett's Berkshire Hathaway has reportedly reduced its holding in Apple, selling off roughly half of its stake in the iPhone maker as part of a wider $76bn stock disposal. According to a report in Financial Times, quoting an SEC filing, Warren Buffett's Berkshire Hathaway has slashed its stake in iPhone maker Apple in half as part of a selling spree in which the billionaire investor sold $76 billion of stocks. Warren Buffet-led investment company slashed its Apple position by more than $50 billion to $84.2 billion in the second quarter, according to filings released on Saturday, August 3. The move generated a substantial $47.2bn after-tax profit, according to FT calculations. Apple remains Berkshire's biggest holding Berkshire Hathaway reported that its Apple bet was worth $135.4 billion, implying around 790 million shares. This marks a decline of around 13% in the stake. Apple was still Berkshire's biggest holding by far at the end of the quarter. Buffett is said to be a big fan of Apple, and has called the company his favourite bet in the past. Why Berkshire Hathway sold Apple shares The reason for Berkshire Hathway cutting its stake is not known. Some speculations suggest it is for tax purposes. According to a report in CNBC, Buffett, while answering shareholder questions at Berkshire's annual meeting in Omaha, suggested that the sale was for tax reasons following sizable gains. He also implied the sale could be tied to him wanting to avoid a higher tax bill down the road if rates go higher to fund a ballooning U.S. fiscal deficit. The Oracle of Omaha began trimming Berkshire's Apple stake late last year, accelerating the process earlier this year. However, he maintained in May that the tech giant remained a core long-term investment alongside Coca-Cola and American Express. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Warren Buffett raises Berkshire cash level to record $277 billion after slashing stock holdings

Warren Buffett walks the floor and meets with Berkshire Hathaway shareholders ahead of their annual meeting in Omaha, Nebraska on May 3rd, 2024. Berkshire Hathaway's cash pile swelled to a record $276.9 billion last quarter as Warren Buffett sold big chunks in stock holdings including Apple. The Omaha-based conglomerate's cash hoard jumped significantly higher from the previous record of $189 billion, set in the first quarter of 2024. The increase came after the Oracle of Omaha sold nearly half of his stake in Tim Cook-led tech giant in the second quarter. Berkshire has been a seller of stocks for seven quarters straight, but that selling accelerated in the last period with Buffett shedding more than $75 billion in equities in the second quarter. That brings the total of stocks sold in the first half of 2024 to more than $90 billion. The selling by Buffett has continued in the third quarter in some areas with Berkshire trimming its second biggest stake, Bank of America, for 12 consecutive days, filing this week showed. For the second quarter, Berkshire's operating earnings, which encompass profits from the conglomerate's fully-owned businesses, enjoyed a jump thanks to the strength in auto insurer Geico. Operating earnings totaled $11.6 billion in the second quarter, up about 15% from $10 billion a year prior. Buffett, who turns 94 at the end of the month, confessed at Berkshire's annual meeting in May that he is willing to deploy capital, but high prices give him pause. "We'd love to spend it, but we won't spend it unless we think [a business is] doing something that has very little risk and can make us a lot of money," the investment icon said at the time. "It isn't like I've got a hunger strike or something like that going on. It's just that ... things aren't attractive." The S&P 500 has surged the last two years to record levels as investors bet the Federal Reserve would lower inflation with higher interest rates, while avoiding an economic recession. So far, that has played out with the S&P 500 up 12% in 2024. However, concerns about a slowing economy have been awakened recently by some weak data, including Friday's disappointing July jobs report. The Dow Jones Industrial average lost 600 points on Friday. Investors have also recently grown concerned about the valuations in the technology sector, which has led the bull market because of optimism surrounding artificial intelligence innovation.