Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Berkshire Hathaway significantly reduced its stake in Apple Inc. during the second quarter of 2025, selling 20 million shares of the tech giant. This divestment, valued at over $4.1 billion in just 90 days, follows substantial sales throughout 2024 and indicates a cautious approach from Warren Buffett’s investment firm regarding its largest holding.
Berkshire’s Shifting Stance on Apple
The recent sale in Q2 2025 builds on a trend from 2024, when Berkshire Hathaway offloaded approximately 600 million Apple shares. Despite these reductions, Apple remains the largest individual holding in Berkshire’s publicly traded portfolio, accounting for over 24% of its equity value with approximately 280 million shares still owned.
Berkshire Hathaway first acquired Apple shares in early 2016, a move often attributed to investment managers Todd Combs and Ted Weschler rather than Buffett himself, who has historically avoided technology stocks. Combs and Weschler reportedly valued Apple’s ability to create a “sticky ecosystem” through the integration of its hardware and software, making it difficult for consumers to switch to competitors.
The firm consistently added to its Apple position from 2016 through 2018. However, Berkshire initiated sales in 2019 and 2020, before becoming a buyer again, albeit on a smaller scale, in 2022 and 2023. The aggressive selling pace observed in 2024 and Q2 2025 marks a notable shift in strategy.
Reasons Behind the Divestment
Several factors may be influencing Berkshire’s decision to trim its Apple holdings. One primary reason is likely portfolio rebalancing; at one point, Apple constituted over 40% of the value of Berkshire’s stock portfolio, which many managers consider an excessively large concentration in a single company. Reducing such a position is a standard practice in portfolio management.
Additionally, Buffett has publicly expressed concerns about potential increases in corporate tax rates in Washington. Selling shares now could allow Berkshire to realize gains under current, potentially lower, tax rates. Ultimately, while Apple may not be considered overvalued in a traditional sense, the sustained selling suggests that Buffett and his team may perceive a diminished potential for significant future gains compared to the stock’s past performance, thereby justifying a reduction from its previously oversized position.
Key Takeaway for Investors
Berkshire Hathaway’s continued reduction of its Apple stake serves as a cautionary signal for individual investors. While Apple remains a substantial component of Berkshire’s portfolio, the aggressive sales indicate a revised outlook on the stock’s future growth trajectory by one of the world’s most prominent investment firms.
