Warren Buffett's Berkshire Hathaway Reduces Apple Inc. Stake Amid Portfolio Reshuffle

Key Points

• Berkshire Hathaway (BRK.A) reduced its stake in Apple Inc. (AAPL) by 13% in Q1 2024.
• Berkshire revealed a new $6.72 billion investment in Chubb Limited, boosting Chubb's stock price.
• The portfolio adjustments include selling all HP Inc. shares and reducing holdings in Chevron and Paramount Global.

In this news

In a significant move, Warren Buffett's Berkshire Hathaway (BRK.A) has reduced its stake in Apple Inc. (AAPL) by 13% during the first quarter of 2024. This decision comes as part of a broader portfolio adjustment aimed at increasing liquidity and diversifying investments amidst high interest rates and overvalued stock prices. The reduction saw Berkshire trimming its Apple holdings by over 116 million shares, leaving it with 789,368,450 shares valued at $135.36 billion.

Berkshire Hathaway's portfolio changes were disclosed in a recent regulatory filing, revealing a new $6.72 billion investment in Chubb Limited, a property and casualty insurer. This new stake aligns with Berkshire's strategy of investing in companies with stable and predictable earnings. The disclosure of this investment led to a significant rise in Chubb's stock price, reflecting investor confidence in Buffett's investment choices. Additionally, Berkshire sold all its shares in HP Inc. and reduced its holdings in Chevron and Paramount Global.

The reduction in Apple shares marks a notable shift for Berkshire, which has long held Apple as one of its top investments. Despite the reduction, Apple remains a core holding in Berkshire's portfolio, alongside other major investments in Bank of America, American Express, and Coca-Cola. Analysts suggest that this move could be a strategic decision to balance the portfolio and prepare for potential market volatility. As Berkshire continues to adapt its investment strategy, the market will closely watch how these changes impact its overall performance and future investment decisions.