Warren Buffett, the legendary investor known as the "Oracle of Omaha" (and "Fireball" by his father), is famous for his smart investment choices. So when it was revealed that his company, Berkshire Hathaway, sold half its Apple shares, many investors were puzzled, trying to understand what it meant.
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Is it all just a coincidence, or is there more to it? Some experts think Buffett prefers round numbers, so stopping at 400 million shares might not be a big deal. Others see Buffett positioning Apple as a key, long-term investment, similar to how he views Coca-Cola.
In the first quarter of 2024, Berkshire Hathaway sold over 100 million Apple shares, and in the second quarter, they sold an additional 390 million shares. Despite this sell-off, Apple is still Berkshire Hathaway's largest public investment, with around 400 million shares worth nearly $90 billion.
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Here are the top five Berkshire Hathaway holdings as of June 30, 2024:
Apple (AAPL) Shares held: 400,000,000 Holding value: $84,248,000,000 Percent of portfolio: 30.52% Bank of America (BAC) Shares held: 942,429,882 Holding value: $37,225,980,339 Percent of portfolio: 13.48% American Express (AXP) Shares held: 151,610,700 Holding value: $35,105,457,585 Percent of portfolio: 12.72% Coca-Cola (KO) Shares held: 400,000,000 Holding value: $25,460,000,000 Percent of portfolio: 9.22% Chevron (CVX) Shares held: 118,610,534 Holding value: $18,553,059,728 Percent of portfolio: 6.72%
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His Apple sell-off is surprising, as Buffett has always been a huge fan of Tim Cook, Apple, and their products. We could hear him talking about how much he admires the company's loyal customer base. He even once said that people would give up their cars before they gave up their iPhones.
Besides, the last time BH sold a large amount of Apple stocks, Charlie Munger, his longtime partner, told him, "That was probably a mistake." So, why would he sell such a large portion of Apple shares now?
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Buffett's move to sell a big portion of Apple stock is similar to how he handled his investment in Coca-Cola. Years ago, he bought many Coca-Cola shares and has kept them for decades, even after the stock split. Now, he owns 400 million shares of both Apple and Coca-Cola, which has some people thinking that this number might mean he's finished selling Apple and plans to keep it as a long-term part of his portfolio.
Interestingly, even as Buffett was selling Apple, other big investors doubled down on the stock. For example, Jennison Associates, a firm managing over $200 billion, added more than 11 million Apple shares in the second quarter. William Jones Wealth Management also increased its Apple holdings by 35,000 shares. On the other hand, some firms, like Coatue Management and Cerity Partners, followed Buffett's lead by reducing their Apple positions.
Whatever the reason, Buffett's latest move with Apple stock again made one thing clear: when Warren Buffett makes a move, the market pays attention.
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