Warren Buffett’s Berkshire sheds Apple stake, boosts cash amid market uncertainty

The Apple stake, once described by Buffett as one of Berkshire’s “four giants,” was previously a cornerstone of the company’s portfolio.

Warren Buffett’s Berkshire Hathaway has continued to reduce its stake in Apple, selling a further 100 million shares in the third quarter, signaling a shift in investment strategy. The latest reduction brings Berkshire’s holdings in Apple to $69.9 billion, down from its peak of $178 billion in 2023. Over the past two years, Buffett’s conglomerate has sold $166 billion in stocks, citing limited attractive opportunities in the US market.

The Apple stake, once described by Buffett as one of Berkshire’s “four giants,” was previously a cornerstone of the company’s portfolio. However, as market valuations rise, Buffett has pivoted to increase Berkshire’s cash reserves, now reaching a record $325.2 billion, largely allocated to short-term US Treasury bills. The move follows Berkshire’s eight consecutive quarters as a net seller, with third-quarter sales also including $10.5 billion of Bank of America shares. This indicates Buffett’s cautious stance, with minimal new stock purchases, totaling just $1.5 billion.

Buffett’s increasing cash position may indicate a “risk-off” approach, according to analysts, as he appears reluctant to reinvest heavily in an expensive stock market, and he anticipates potential tax hikes due to the US budget deficit. Additionally, the high yields on Treasury bills provide a safer alternative for returns amid current economic uncertainty.

Berkshire reported quarterly operating profits of $10.1 billion, a 6 percent decrease year-over-year, due to substantial insurance losses from Hurricanes Helene and Milton, along with a $535 million settlement over asbestos-related claims. The conglomerate’s diversified operations, spanning industries from transportation to insurance, showed mixed performance. Geico’s profits rose due to fewer accident claims, while fuel and retail sales faced declines.

While Buffett’s investments in short-term Treasuries now yield $10 billion annually, some analysts suggest this cash build-up hints at either a view that stocks are overvalued or preparation for a large acquisition, echoing Buffett’s history of capitalising during market downturns.