World’s ‘biggest investor’ has halved its stake in Apple, and this may be the reason

The world’s largest investment group Warren Buffett’s Berkshire Hathaway has reportedly reduced its holding in Apple, selling off roughly half of its stake in the iPhone maker as part of a wider $76bn stock disposal. According to a report in Financial Times, quoting an SEC filing, Warren Buffett’s Berkshire Hathaway has slashed its stake in iPhone maker Apple in half as part of a selling spree in which the billionaire investor sold $76 billion of stocks.
Warren Buffet-led investment company slashed its Apple position by more than $50 billion to $84.2 billion in the second quarter, according to filings released on Saturday, August 3. The move generated a substantial $47.2bn after-tax profit, according to FT calculations.

Apple remains Berkshire’s biggest holding

Berkshire Hathaway reported that its Apple bet was worth $135.4 billion, implying around 790 million shares. This marks a decline of around 13% in the stake. Apple was still Berkshire’s biggest holding by far at the end of the quarter. Buffett is said to be a big fan of Apple, and has called the company his favourite bet in the past.

Why Berkshire Hathway sold Apple shares

The reason for Berkshire Hathway cutting its stake is not known. Some speculations suggest it is for tax purposes. According to a report in CNBC, Buffett, while answering shareholder questions at Berkshire’s annual meeting in Omaha, suggested that the sale was for tax reasons following sizable gains. He also implied the sale could be tied to him wanting to avoid a higher tax bill down the road if rates go higher to fund a ballooning U.S. fiscal deficit.
The Oracle of Omaha began trimming Berkshire’s Apple stake late last year, accelerating the process earlier this year. However, he maintained in May that the tech giant remained a core long-term investment alongside Coca-Cola and American Express.