Warren Buffett takes the stage before Berkshire Hathaway’s annual shareholder meeting on May 3, 2024 in Omaha, Nebraska.
David A. Grogen | David A. Grogen CNBC
OMAHA, Neb. — Warren Buffett’s Berkshire Hathaway is slashing size apple The stakes have been reduced in season one as the “Oracle of Omaha” continues to scale back his once-favorite bets.
Berkshire Hathaway said in its first-quarter earnings report that its bet on Apple was worth $135.4 billion, equivalent to about 790 million shares. This would mark a reduction of approximately 13% in the stake. As of quarter-end, Apple remained Berkshire Hathaway’s largest holding by far.
This is the second consecutive quarter that the Omaha-based conglomerate has reduced its stake in the iPhone maker. In the fourth quarter, the company sold about 10 million Apple shares (just 1% of its massive stake). The filing, after taking into account changes in Apple’s stock price, means Berkshire sold about 116 million shares.
Buffett became a big fan of Apple after one of his investment managers, Ted Weschler or Todd Combs, convinced him to buy Apple stock a few years ago . Buffett even called the tech giant his second most important business, behind Berkshire’s insurance cluster.
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Many have speculated that the 93-year-old investing icon has reduced his favorite holdings due to valuation concerns. Apple shares soared 48% in 2023 as big tech stocks led the market’s rally. At its peak, Apple’s share of Berkshire’s stock portfolio surged to 50%. The stock currently trades at a price-to-earnings ratio of more than 27 times.
Shares of the iPhone maker surged over the past week after it announced its board had authorized a $110 billion stock buyback, the largest in the company’s history. However, Apple’s overall sales and iPhone sales declined. The stock has fallen more than 4% so far this year on concerns about how the company will revive growth.
It’s not unprecedented for a Berkshire CEO to adjust his bet on Apple. He sold some shares in the fourth quarter of 2020, but Buffett admitted at the time that it “may have been a mistake.” In addition, it is unusual for Buffett to cut such a large position.
Even with the sale of Apple, Berkshire Hathaway remains Apple’s largest shareholder outside of exchange-traded fund providers.
