Berkshire Hathaway cuts Apple stake, reduces equity exposure

On Saturday, Berkshire Hathaway Inc. reported solid third-quarter results, despite a decline in its equity investments, including a significant reduction in its Apple Inc. stake.

Berkshire Hathaway cuts Apple stake, reduces equity exposure

The Omaha-based conglomerate, led by Warren Buffett, posted net earnings of $26.25 billion for the quarter, a sharp turnaround from a $12.77 billion loss in the same period last year. Earnings per share for Class B stock reached $12.18, compared to a loss of $5.88 per share in Q3 2023. Total revenue dipped slightly to $93.00 billion from $93.21 billion a year earlier, while investment gains reached $20.51 billion, a substantial recovery from last year’s $29.78 billion in investment losses. Berkshire reported spending $5.8 billion to acquire equity securities in the first nine months of 2024 while generating $133.2 billion from asset sales. Among these divestments was a considerable reduction in its Apple holdings. At the end of September, Berkshire’s stake in Apple was valued at $69.9 billion, down from $84.2 billion at the mid-year mark and $174.3 billion at the end of 2023. Despite this reduction, Apple remains Berkshire’s largest holding, comprising a substantial portion of the portfolio.

70% of portfolio concentrated in five companies only

About 70% of Berkshire’s fair-value portfolio is concentrated in five companies: Apple, American Express Co. ($41.1 billion), Bank of America Corp. ($31.7 billion), Coca-Cola Co. ($28.7 billion), and Chevron Corp. ($17.5 billion). These top five holdings made up 79% of the portfolio’s value at the close of 2023. Reflecting a strategic pivot, Berkshire’s total equity holdings fell 23% to $271.65 billion from $352.84 billion at the end of last year, while its investments in short-term U.S. Treasury Bills more than doubled, rising to $288.03 billion from $129.62 billion. Notably, Berkshire conducted no stock buybacks in the third quarter, signaling a more cautious approach to capital allocation amid market uncertainties.