Berkshire Hathaway Trims Apple Investment but Maintains Strong Holding

Highlights

• Berkshire Hathaway reduces Apple stake by 13%, now holds 790 million shares.
• Apple remains Berkshire’s largest investment despite a 22% value drop.
• Warren Buffett reassures Apple’s importance in Berkshire’s portfolio.
• Berkshire reports $11.2 billion profit in Q1 from selling investments.

Warren Buffett’s company Berkshire Hathaway has cut down its huge investment in Apple Inc for the second quarter in a row.

In its latest earnings report, Berkshire said its stake in Apple was worth $135.4 billion, which means it now owns around 790 million Apple shares. This is a 13% decrease in Berkshire’s Apple holding.

Apple Still Berkshire’s Investment

Despite the reduction, Apple remains Berkshire’s biggest investment. The value of Berkshire’s Apple stake fell 22% to $135.4 billion at the end of March, even though Apple’s share price only dropped 11% in that quarter.

This is a change for Buffett, who normally avoids tech companies but came to see Apple as a strong consumer brand with loyal customers.

Some investors were worried that Apple made up too much of Berkshire’s portfolio. But at Berkshire’s recent annual meeting, Buffett assured the shareholders that “unless something dramatic happens that really changes capital allocation, we will have Apple as our largest investment.”

He highlighted Apple’s pricing power and devoted customer base as reasons for sticking with the investment.

He also said Berkshire’s cash pile could grow beyond $200 billion by June, as the company looks for big investment opportunities, likely in the US.

Berkshire Reporting a Good Q1

While Berkshire reduced its Apple stake, it still made an $11.2 billion profit in the first quarter from selling some investments.

Overall, Berkshire reported record quarterly profits, helped by strong insurance underwriting income.

Buffett has gradually trimmed Berkshire’s Apple holding after making it one of his company’s biggest bets a few years ago. But he signaled Apple will remain a core Berkshire investment for now.

FAQs

How much did Berkshire Hathaway reduce its Apple investment by?

Berkshire Hathaway decreased its Apple stake by 13%, which reflects the selling of shares but maintains Apple as its largest holding.

What is the current value of Berkshire Hathaway’s investment in Apple?

As of the end of March, Berkshire Hathaway’s investment in Apple was valued at $135.4 billion, despite a decrease in the overall share count.

Why does Warren Buffett value Apple as a core investment?

Warren Buffett sees Apple as a significant consumer brand with strong pricing power and a devoted customer base, which underpins its value in Berkshire’s portfolio.

What did Warren Buffett say about the future of Berkshire’s investment in Apple?

At Berkshire’s annual meeting, Buffett stated that Apple would remain the company’s largest investment barring any major changes in capital allocation.

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