NYSE title Berkshire Hathaway share: Warren Buffett’s holding company Berkshire is massively selling Apple shares and hoarding more and more cash

As usual, Warren Buffett’s investment holding company Berkshire Hathaway will also publish its figures for the second quarter of 2024 at the weekend. On Saturday, things got exciting for Berkshire Hathaway investors.

Berkshire Hathaway’s quarterly balance sheet is being scrutinized by investors with a keen eye. On Saturday, star investor Wasten Buffett opened his books and provided an insight into business developments in the second quarter of 2024.

In the second quarter of the current fiscal year 2024, the Buffett holding company’s sales rose to $93,653 billion, an increase of 1.24 percent compared to the previous year’s figure ($92.503 billion).

Earnings per A share also decreased significantly from USD 24,775 per A share to USD 21,122 per A share (a decrease of almost 15 percent).

6530,249 Buffett’s holding company also held $224.239 billion in cash in the second quarter of 2024–a record that far exceeds the $121.845 billion the conglomerate held at the end of 2023.

Buffett sells massive Apple shares

A large part of the enormous increase in cash reserves is likely due to the sale of Apple shares. The quarterly report also showed that Warren Buffett’s Berkshire Hathaway surprisingly sold off almost half of its gigantic Apple holding. The Omaha-based conglomerate announced that its stake in the iPhone manufacturer was valued at $84.2 billion at the end of the second quarter, which, according to CNBC, means that the Oracle of Omaha sold off 49.4 percent of its tech bet.

Buffett reduced his Apple stake by 13 percent in the first quarter. The star investor indicated at the Berkshire annual meeting in May that this was for tax reasons. Buffett noted that selling “a little bit of Apple” this year would benefit Berkshire shareholders in the long term if the tax on capital gains is raised by a US government that wants to balance the growing budget deficit. However, the high level of sales in the second quarter suggests that this could be more than just a tax-saving measure – rather, Buffett’s expectations of further price gains in the recently well-performing Apple shares could be limited.

Apple is not the only stock that the old master is cashing in on. In recent days, Berkshire has already sold billions worth of Bank of America shares.

Since there is no regular trading on Wall Street over the weekend, stock market traders will not be able to react to Berkshire’s figures for the second quarter of 2024 until Monday.

Editorial staff finanzen.net

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