Buffett’s Berkshire Moves Trigger Apple Stock Sell-Off

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Apple shares experienced a significant drop of up to 11%, leading a broader tech sell-off amid global market turmoil. The sharp decline in Apple’s stock, which outpaced the Nasdaq 100’s 5% drop, followed revelations that Warren Buffett’s Berkshire Hathaway had sold approximately 50% of its stake in the tech giant.

After the market opened, Apple’s stock quickly pared its deepest losses, with shares down around 4.8% to $209.73. The second-quarter earnings report from Berkshire Hathaway revealed that the conglomerate offloaded about 390 million Apple shares during the quarter, adding to the 115 million shares it sold earlier in the year.

Despite these sales, Berkshire Hathaway continues to hold about 400 million shares in Apple, a position worth roughly $84 billion, making it the company’s largest investment. This massive sale boosted Berkshire Hathaway’s cash reserves to a record $277 billion, a 47% increase from the previous quarter. The significant cash position has sparked concerns among investors that Buffett may be growing wary of the stock market.

Cathy Seifert, an analyst at CFRA Research, commented, “Looking at Berkshire’s overall strategy and the current economic landscape, it’s reasonable to conclude that the company is becoming more defensive.”

Wedbush analyst Dan Ives described the Apple sale as “eye-popping” and noted that it would likely add pressure to the market. However, Ives remained optimistic about Apple, especially with the anticipated launch of the iPhone 16. He remarked, “Apple remains Buffett’s top holding, almost double that of Bank of America. Despite the current market anxiety, this isn’t the time to sell Apple. This is an opportunity, especially ahead of what I see as a historic upgrade cycle for the company.”