Berkshire Hathaway Cuts Apple Stake as Buffett Hosts 60th Meeting
In a notable move by Berkshire Hathaway, the conglomerate headed by Warren Buffett, the company has scaled back its investment in Apple, selling 13% of its stake in the technology giant during the first quarter of 2024. The sale reduced Berkshire's holding in Apple from $174.3 billion at the end of 2023 to $135.4 billion by March 31, 2024, marking a significant shift in its investment strategy. Despite Apple's strong Q2 2024 performance and a record-setting $110 billion stock buyback announcement, Berkshire Hathaway has opted to lessen its exposure to the tech company, which had become a substantial part of its portfolio.
This reduction coincides with Berkshire Hathaway's 60th annual shareholder meeting in Omaha, Nebraska, the first since the passing of Buffett's longtime business partner, Charlie Munger. The meeting is not only a platform for shareholder engagement but also features exhibits from various Berkshire-owned companies. Amidst the changes in its Apple stake, Berkshire Hathaway's cash reserves have grown to a staggering $189 billion, and the company has reported a record operating profit exceeding $11 billion, largely driven by improved underwriting and increased earnings from investments as interest rates rose.
Berkshire Hathaway's approach to managing its vast investment portfolio has been under scrutiny as some investors voiced concerns over the proportion of the portfolio dedicated to Apple. Despite these concerns and the sale of Apple shares, Berkshire Hathaway's financial position remains robust, with the company repurchasing $2.6 billion of its own stock during the quarter and maintaining a minimum $30 billion funding cushion as pledged by Buffett. The shareholder meeting also included votes on proposals concerning climate, diversity, and operations in China, all of which Buffett opposed.
