OMAHA: Berkshire Hathaway significantly reduced its enormous stake in Apple in the first quarter, as Warren Buffett‘s conglomerate let its cash hoard swell to a record $189 billion. Buffett’s company also posted a record operating profit exceeding $11 billion, as its insurance operations benefited from improved underwriting and higher income from investments as interest rates rose.
The value of Berkshire’s stake in Apple fell 22% to $135.4 billion as of March 31 from $174.3 billion at the end of 2023, even though the iPhone maker’s share price fell just 11% in the quarter. Based on changes in Apple’s stock price, Berkshire appears to have sold about 115 million shares, or 13% of its holdings, in the quarter, ending with about 790 million.
A large sale is an about-face for Buffett, who is normally tech-phobic but came to view Apple as a consumer goods company with strong pricing power and devoted customers.
At the annual meeting on Saturday, Buffett assured shareholders that “unless something dramatic happens that really changes capital allocation, we will have Apple as our largest investment.”