Citing SEC filings published last week, Business Insider is reporting that billionaire investor Warren Buffett sold more than $800 million worth of Apple stock last quarter. Although the figure might sound like a massive sale, it must be noted that Buffett’s Berkshire Hathaway currently owns a 5.4% stake in Apple which is worth $72 billion.
As to why Berkshire Hathaway decided to trim its stake in Apple remains unknown at this time. Although it is being speculated that the American multinational conglomerate may have wanted to diversify its holdings given that Apple accounts for nearly 30% of its portfolio.
SEC filings also show that Berkshire Hathaway has in fact made fresh investments in Kroger and Biogen during the last quarter:
Alternatively, they may have wanted to cash out after Apple’s stock surged by a third last quarter, from roughly $219 to $294. Depending on when they sold the 3.7 million Apple shares, they netted between $806 million and nearly $1.1 billion.
Buffett is unlikely to sell a significant amount of his Apple shares anytime soon, given his preference for long-term investing over a quick payday. He’s also unlikely to buy more.
At nearly $325 per share, Apple’s current market capitalization stands at over $1.4 trillion.