Berkshire Hathaway Trims AAPL Stake by 13% Yet Apple Retains Top Spot in Portfolio

• Warren Buffett’s Berkshire Hathaway has reduced its stake in tech giant Apple Inc for the second consecutive quarter, according to its first-quarter earnings report.
• The value of Berkshire’s stake in Apple fell 22 per cent to $135.4 billion as of March 31 from $174.3 billion at the end of 2023, despite the iPhone maker’s share price falling just 11 per cent in the quarter.
• Buffett, who is usually wary of tech investments, views Apple as a consumer goods company with strong pricing power and loyal customers.

Warren Buffett’s Berkshire Hathaway trims its stake in Apple for the second straight quarter, marking a significant shift in the investment strategy of the conglomerate.

Berkshire Hathaway Reduces Apple Stake

Berkshire Hathaway’s first-quarter earnings report revealed a 13 per cent reduction in its stake in Apple, bringing the value down to $135.4 billion. This move comes despite Apple’s share price only falling 11 per cent in the same quarter. The tech giant remains Berkshire’s largest holding by a significant margin.

Buffett’s View on Apple

Warren Buffett, known for his cautious approach to tech investments, sees Apple more as a consumer goods company with strong pricing power and a dedicated customer base. Despite the reduction in stake, Apple CEO Tim Cook has expressed that it remains a privilege to have Berkshire as a major shareholder.

Investor Concerns and Future Plans

Some investors have raised concerns over Apple’s large share in Berkshire’s investment portfolio. In response, Buffett assured shareholders at Berkshire’s annual general meeting that Apple will remain their largest investment unless a dramatic shift in capital allocation occurs. He also hinted at the possibility of expanding the cash stake, with cash potentially exceeding $200 billion by the end of June.

Berkshire Hathaway’s Performance

Berkshire Hathaway’s stock has seen a 23 per cent increase over the last year, slightly lagging behind the Standard & Poor’s 500’s 25 per cent gain. Over the last decade, the stock has risen 218 per cent compared to the S&P’s 172 per cent gain.

Conclusion

Despite the reduction in Berkshire Hathaway’s stake in Apple, the tech giant remains the conglomerate’s largest holding. With Buffett’s assurance of Apple’s continued prominence in their portfolio, investors will be watching closely for future developments.