Berkshire Hathaway made headlines when it sold its Apple shares last quarter, despite Buffett's frequent love of the tech company.
In a report filed with the US Securities and Exchange Commission (SEC) on February 14, Berkshire Hathaway - Warren Buffett's investment company said it sold 10 million Apple shares in the last quarter of 2023, equivalent to 1% of the Apple shares it holds.
The move is notable, given that Buffett is known for his long-term holdings. “If you’re not willing to own a stock for 10 years, don’t even think about owning it for 10 minutes,” he once said.
Berkshire Hathaway Chairman Warren Buffett at the company's shareholder meeting in Nebraska (USA) in 2019. Photo: Reuters
Berkshire still owns more than 905 million Apple shares, worth about $174 billion. That's 6% of the company's total outstanding shares. Berkshire invested in the tech giant in 2016.
Apple stock is Berkshire's largest asset, along with insurance, railroads and energy. These are the four main areas that create value for Berkshire.
While Buffett pushed Berkshire to invest in Apple, the sale could have been made by either Todd Combs or Ted Weschler, Berkshire's two portfolio managers.
This is also not the first time Berkshire has sold Apple shares. In the second half of 2020, Berkshire sold about $11 billion worth of Apple shares.
Buffett explained the move as “probably a mistake” at a shareholder meeting. He once praised Apple CEO Tim Cook as “one of the best managers in the world ” and Apple as “the best investment Berkshire has ever made.”
Apple shares closed down 0.1% yesterday. The stock has lost 1% since the beginning of the year.
The report also showed that Berkshire sold 80 million shares of computer maker HP in the last quarter of 2023. They also sold 32% of their Paramount holdings.
This is the second quarter in a row that Berkshire has been granted permission by the SEC to keep some of its major investments secret. Because many investors tend to follow Berkshire’s portfolio closely and follow Buffett’s lead, hoping to replicate his success, Berkshire doesn’t want investors rushing to buy shares before the company completes the transaction.
On February 24, Buffett will publish his annual letter to shareholders, the first since his longtime partner Charlie Munger passed away in November 2023.
Ha Thu (according to Reuters, CNN)
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