Warren Buffett’s Berkshire Hathaway Decide to Reduce Stakes in Apple

Apple Inc. (Credits: Apple)

Warren Buffett continues to express strong support for Apple despite Berkshire Hathaway reducing its stake in the tech giant during the first quarter.

At his annual meeting, Buffett lauded Apple, highlighting its exceptional business performance and placing it on par with other major holdings like American Express and Coca-Cola within Berkshire’s extensive stock portfolio.

Despite Berkshire selling about 13% of its Apple shares in the initial months of 2024, Buffett emphasized the company’s enduring appeal and hinted that tax considerations might have influenced the decision.

Berkshire’s remaining stake in Apple amounted to $135.4 billion by the end of March, as disclosed in a regulatory filing released recently.

Berkshire Hathaway Logo (Credits: Berkshire Hathaway)

Buffett projected that Apple would likely remain Berkshire’s largest stock holding by the year’s end. He made these remarks at the annual meeting, with Greg Abel, his designated successor, sitting beside him while Apple CEO Tim Cook observed from the audience.

Buffett contrasted Berkshire’s continued confidence in Apple with its decision to divest entirely from Paramount Global, citing significant losses incurred.

Despite market speculation, Buffett clarified that he personally made the decision to sell Paramount Global shares without involvement from his deputies.

The annual meeting, marked by the absence of Buffett’s longtime business partner Charlie Munger, included a tribute to Munger in the form of a short film featuring his notable moments and memorable lines. Munger received a standing ovation from attendees.

The passing of Munger prompted shareholder Melissa Vainik and her mother to attend the meeting in remembrance of Munger’s influence.

Warren Buffett (Credits: Daniel Zuchnik/WireImage/Getty Images)

Buffett, known for his role as Berkshire’s chief stock picker, indicated that the company’s board would decide on future investment management, suggesting that Greg Abel might handle capital allocation going forward.

Shareholders flocked to the annual meeting, lining up early in the morning to secure seats. The event featured various exhibits and activities, reflecting Berkshire’s diverse business interests and subsidiaries like Geico and Dairy Queen.

Berkshire’s first-quarter results revealed a rise in operating earnings and a record-high cash pile, prompting speculation about future investment strategies.

Buffett emphasized the company’s selective approach to investments, stating that they only pursue opportunities that align with their preferences.

As Berkshire’s cash reserves continue to grow, observers eagerly await Buffett’s next move in deploying these funds. Despite uncertainty surrounding Berkshire’s investment plans, Buffett remains committed to seeking out opportunities that resonate with the company’s long-term vision.

Jessica Smith
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