On November 4th, local time, Berkshire Hathaway, a subsidiary of well-known American investor Warren Buffett, announced its third quarter 2024 financial report.
According to the financial report, after reducing its holdings of Apple Inc. by nearly 50% in the second quarter, Berkshire Hathaway further reduced its holdings of Apple Inc. by 25% in the third quarter. Among the approximately $36.1 billion worth of stocks sold by the company in the third quarter, there were also billions of dollars worth of shares in Bank of America.
Data shows that as of the end of September, Berkshire Hathaway's cash reserves have risen to $325.2 billion, setting a new historical high.
In 2016, Berkshire Hathaway first disclosed its holdings in Apple. And in the following years, he continued to increase his holdings of Apple stocks. By the end of 2021, Berkshire Hathaway had spent $31.1 billion to purchase 908 million shares of Apple stock, making Apple one of the largest stocks held by the company. However, since the beginning of this year, Berkshire Hathaway's attitude towards holding Apple has undergone significant changes. From 905 million shares at the beginning of the year to 300 million shares now, Buffett has reduced his holdings of approximately 67% in Apple.
There are speculations in the market about this reduction in holdings. Some analysts believe that this may be related to Buffett's changing views on Apple's future growth potential. Although Apple remains one of the world's most valuable companies, facing increasingly fierce market competition and technological changes, Buffett may believe that Apple's growth potential is limited. In addition, some argue that Buffett's move is to cope with potential market uncertainty and risks in the future, by reducing his holdings of stocks to stockpile cash reserves.