Warren Buffett’s Sell-Off Sends Apple Shares Plummeting 5%

In a move that caused Apple shares to tumble by 5% on Monday, Warren Buffett’s Berkshire Hathaway announced a significant reduction in its Apple holdings over the weekend, CNBC is reporting.

Berkshire Hathaway’s latest earnings report revealed that the conglomerate’s Apple investment was valued at $84.2 billion at the close of the second quarter. This valuation indicates that Buffett, often referred to as the “Oracle of Omaha,” has offloaded just over 49% of Berkshire’s stake in the tech giant.

The market reacted sharply to the news, with Apple’s stock experiencing a steep decline of more than 5% by the end of Monday. At one point, the shares had plummeted as much as 10%, underscoring the heightened anxiety among investors about a potential economic slowdown.

The 93-year-old Buffett has been actively selling off significant portions of Berkshire’s equity holdings, liquidating over $75 billion in the second quarter alone.

This aggressive divestment strategy has bolstered Berkshire’s cash reserves to an unprecedented $277 billion, marking a historic high for the company. Notably, Buffett has also begun reducing his stake in Bank of America, Berkshire’s second-largest holding, starting in July.

Earlier this year, Buffett had already shed 13% of his Apple shares, attributing the sale to anticipated tax hikes by the U.S. government aimed at addressing a growing fiscal deficit.

Berkshire’s initial investment in Apple began in 2016, largely driven by the insights of Buffett’s investment managers, Ted Weschler and Todd Combs. Over time, Buffett grew increasingly enthusiastic about Apple, eventually making it Berkshire’s largest single holding.

At its peak, Apple accounted for half of Berkshire’s equity portfolio, prompting speculation that the recent sales are part of a broader portfolio management strategy.