Berkshire Hathaway (NYSE: BRK.B), the investment conglomerate run by Warren Buffett, has reduced its stake in tech giant Apple by nearly half. In the second quarter, it reduced its Apple shares from 790 million to 400 million, a noticeable move for a firm that usually holds onto stocks for a long time. Berkshire’s Apple shares were valued at $84.2bn as of June end, the Buffett-run firm disclosed in its latest quarterly report.

Berkshire began investing in Apple in 2016, buying $40bn of shares over time. Apple’s shares have appreciated nearly 800% since Berkshire first disclosed its stake, delivering a massive return for the investment conglomerate.

• Nebraska-based Berkshire began selling its Apple shares last year, starting with about 1% of its holdings from October to December 2023. Then, it sold 13% in the first quarter of 2024. The sizeable second-quarter selloff means Berkshire has sold 56% of its Apple shares in 2024.

After halving its Apple stake and selling other stocks, Berkshire’s cash pile has swelled to a record $277bn. Encouraged by higher interest rates, the firm has invested its swelling cash pile in U.S. Treasuries and scaled back on equity investments. As of June end, it held $235bn in U.S. Treasury Bills, earning $2.6bn in interest income from April to June.

• Global investors closely monitor Berkshire’s decisions, but selling off its Apple shares may not mean much. Buffett and his deputies could think Apple has reached a colossal level and has little room for stellar growth. Cashing in its chips is a rational decision for Berkshire after years of sitting on massive paper profits.

As of June end, Berkshire held $285bn worth of equities, concentrated in Apple, American Express, Bank of America, Chevron, and Coca-Cola. The company reported a $30bn net profit on $94bn in revenue in the second quarter.

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