Warren Buffett's Berkshire slashes Apple stake, breaks cash record

Warren Buffett's fund, Berkshire Hathaway, sold nearly half its Apple shares over the last quarter. Meanwhile, it reported holding a record amount of cash: $277 billion.

According to CNBC, Berkshire Hathaway's Apple shares were worth $84.2 billion at the end of the second quarter. This means Buffett's fund sold more than 49% of its holdings in the tech giant. Despite this sell-off, Apple remains the largest position in Berkshire's portfolio.

Apple was not the only company whose shares Berkshire was selling. According to CNBC, the fund sold shares worth $75 billion. This means Buffett's investment vehicle holds a record amount of cash: $277 billion.

Berkshire's first major sale of Apple shares occurred in the first quarter of 2024, reportedly due to tax issues. As Buffett explained then, selling some shares could benefit the fund's investors if US authorities raise capital gains taxes. However, CNBC notes that the sale scale may be driven by factors other than tax reasons.

Berkshire Hathaway started buying Apple shares in 2016 and steadily added more over the years, at one point making Apple nearly half of the fund's entire portfolio. The current sell-off has affected Apple and other holdings, such as Bank of America, where the position was reduced by $3.8 billion.

All this happened before weak labor market data emerged from the US, increasing fears of a recession. Investors are also concerned about rising tensions between Iran and Israel. Additionally, on Monday, the Japanese stock market experienced its worst decline in years, impacting other markets.