Starting in Q1 of 2024, Warren Buffett made headlines by significantly reducing his Apple stock holdings. Over the past two quarters, Buffett’s Berkshire Hathaway sold approximately 510 million shares, decreasing its Apple stake by around 56%. Despite this selloff, Apple remains Berkshire’s largest equity holding, making up 41% of the portfolio.

Buffett has not disclosed the reasons for this massive selloff, but it indicates a more defensive stance in a high-priced market. Berkshire sold $90 billion in stocks in the first half of 2024, with Apple sales making up the majority. This move increased Berkshire’s cash reserves from $189 billion to $278 billion by the end of Q1.

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The 10Q filing revealed further sales, including $4 billion in Bank of America shares.

Buffett’s decision to sell Apple stock represents a classic “sell high” strategy. When Buffett bought Apple, its PE ratio was 16; by the time he started selling, it had doubled to 32, making the stock expensive. Despite missing the peak price of $235 in July, Apple shares dropped back to $211, influenced partly by news of Berkshire’s sales.

Buffett’s move showcases his ability to time the market, having bought Apple at a low point in 2016 and selling at a high in 2024. This strategic sale reflects his cautious outlook on Apple’s future returns, highlighting his belief that current valuations are overly optimistic.