Berkshire Hathaway, led by Warren Buffett, has significantly reduced its stake in Apple and increased its cash reserves to nearly $277 billion. The move signals a defensive strategy amid concerns about the U.S. economy and high stock market valuations.
Key Points
- Apple Stake Reduction:
- Sold about 390 million Apple shares in the second quarter
- Additional 115 million shares sold from January to March
- Berkshire still holds about 400 million Apple shares worth $84.2 billion
- Increased Cash Reserves:
- Cash reserves grew to $276.9 billion as of June 30
- Up from $189 billion three months earlier
- Net sales of $75.5 billion in stocks contributed to the increase
Financial Performance
- Record Quarterly Profit:
- Berkshire posted a record quarterly operating profit
- Despite the profit, the focus on increasing cash reserves indicates caution
Market Conditions
- Economic Concerns:
- Recent stock market selloff pushed the Nasdaq into correction territory
- Weak jobs report raised concerns about U.S. economic activity
- Worries about the Federal Reserve’s timing on interest rate cuts
- Analyst Insights:
- Cathy Seifert of CFRA Research suggests Berkshire is getting defensive
- Jim Shanahan of Edward Jones expresses concern over Buffett’s views on market opportunities
Table: Key Metrics
| Metric | Details |
|---|---|
| Apple Shares Sold (Q2) | 390 million |
| Apple Shares Sold (Q1) | 115 million |
| Remaining Apple Shares | 400 million (worth $84.2 billion) |
| Cash Reserves (June 30) | $276.9 billion |
| Cash Reserves (March 31) | $189 billion |
| Net Stock Sales | $75.5 billion |
| Stock Buybacks (Q2) | $345 million |
| Stock Buybacks (Q1) | $2.57 billion |
Warren Buffett’s Berkshire Hathaway is adopting a cautious approach by significantly boosting cash reserves and reducing its stake in Apple.
