Warren Buffett’s Berkshire Hathaway Sells Off Apple Shares
Warren Buffett’s investment company, Berkshire Hathaway, significantly reduced its stake in Apple in the second quarter, generating $47 billion in revenue from the sale of shares. While many of the companies it owns are performing well, profits have been dragged down by the fall in the book value of its remaining investments.
Key Investment Moves
One of the most significant moves made by Buffett this quarter was the sale of a large portion of Apple shares. Buffett has previously stated that Apple is the backbone of Berkshire’s business and he intends to hold onto it indefinitely. Additionally, Berkshire continued to reduce its investment in the Chinese electric vehicle manufacturer BYD and sold some Bank of America shares.
Financial Performance
Although Berkshire did not disclose the specific number of Apple shares in the report, it estimated the investment was worth $84.2 billion at the end of the second quarter. This was a decrease from $135.4 billion in the first quarter, despite Apple’s stock rising to $237.23 during the summer. Berkshire reported earnings of $30.348 billion, or $21,122 per Class A share, in the second quarter, down from $35.912 billion, or $24,775 per Class A share, a year ago.
Buffett has long advised investors to focus on Berkshire’s operating income when evaluating performance, as investment gains and losses can fluctuate. In terms of operating income, Berkshire’s profit increased by over 15% to $11.598 billion, or $8,072.16 per Class A share, compared to $10.043 billion, or $6,928.40 per Class A share, last year.
Business Portfolio
Berkshire Hathaway owns a diverse range of businesses, including insurance companies, BNSF Railroad, major utilities, and retail and manufacturing companies like Dairy Queen and See’s Candy. Geico led the improvement in Berkshire’s business performance, offsetting lackluster results from other economically sensitive companies.
Despite the decline in the value of its ongoing investments, Berkshire’s operational profits exceeded analysts’ expectations. The company’s solid financial standing and diverse business portfolio continue to make it a key player in the investment world.
