Warren Buffett’s Berkshire Hathaway cut Apple investment by about 13% in the first quarter

Warren Buffett, the renowned investor known as the “Oracle of Omaha,” has significantly reduced his company’s stake in Apple, indicating concerns about its valuation.

In the first quarter, Berkshire Hathaway, Buffett’s holding company, sold approximately 116 million Apple shares, reducing its stake by 13%.

This follows a previous sell-off in the fourth quarter of 2022, bringing the total decline to around $65 billion worth of Apple shares.

Despite these sales, Apple remains Berkshire Hathaway’s largest holding.

However, the reduction in Apple’s size within the portfolio suggests that Buffett is wary of its valuation, which has surged in recent months.

Apple’s stock appreciated by nearly 50% in 2023, leading to a significant increase in its overall position in Berkshire’s portfolio.

At its peak, Apple accounted for half of Berkshire’s equity portfolio, raising concerns about concentration risk.

Shares of Apple have recently experienced a boost following the company’s announcement of a $110 billion share repurchase plan, but they have also faced concerns about slowing growth.

Despite these, Buffett has historically adjusted his Apple position based on his assessment of its valuation.

It is important to note that even after the sale, Berkshire Hathaway remains Apple’s largest shareholder, excluding passive index funds.

Buffett’s moves highlight his cautious approach to portfolio management and his willingness to adjust positions that he believes have become overvalued.