Buffett Sells (Again) Apple Shares, Sets New Liquidity Record

Warren Buffett’s Latest Moves Shake the Investment World

Warren Buffett is once again making headlines among investors worldwide, as the liquidity of his holding company Berkshire Hathaway has reached a record $276.9 billion in the second quarter.
At the same time, the billionaire has cut his stake in Apple by almost 50%.

Berkshire Hathaway’s Record Liquidity and Apple’s Share Cut

According to documents released on Saturday, August 3rd, in the second quarter, the company reduced its stake in Apple by over $50 billion, bringing it down to $84.2 billion.
Analysts from the Financial Times suggest that Berkshire sold approximately 390 million Apple shares, roughly half of its stake.

The record liquidity of $276.9 billion as of June 30 represented a significant increase from $189 billion, partly due to Berkshire selling off another substantial portion of its Apple holdings.

Operational Earnings and Apple’s Position

Operational earnings for the second quarter rose by 15%, jumping from $10.04 billion in the previous year to $11.6 billion, around $8,073 per Class A share.
Half of this increase came from subscriptions and investments in Berkshire’s insurance activities.

Buffett had already trimmed the Apple stake by 13% in the first quarter, stating that selling some Apple shares this year would benefit Berkshire shareholders in the long run if capital gains tax were to increase in the future to tackle a growing U.S.
fiscal deficit.

In May, he reassured shareholders that Apple remained one of the conglomerate’s key holdings, alongside long-term investments like Coca-Cola and American Express.
Despite recent adjustments, Buffett expressed his confidence in Apple as their largest investment.

Buffett has also begun reducing his second-largest holding, Bank of America, shedding $3.8 billion in bank shares over a 12-day selling streak.
Overall, the quarterly report revealed Buffett’s decrease in stock holdings last quarter, coinciding with the S&P 500 hitting new highs amid expectations of a soft economic landing.

This optimism was challenged this week with weaker-than-expected job reports in the U.S., raising concerns about the previously anticipated soft landing for the economy.