Warren Buffett, who is a famous investor, has recently shocked the financial world by selling almost half of Berkshire Hathaway's stake in the Apple company.
The move marks a drastic shift for the 93-year-old investor, who has held key positions at the tech giant since 2016.
Berkshire's second-quarter filing revealed that its Apple stake was worth $84.2 billion, representing a reduction of more than 49%.
Despite this massive selloff, Apple remains the largest stock in Berkshire's portfolio.
The decision is part of a broader pattern, with Berkshire unloading more than $75 billion in equity, increasing its cash reserves to a record $277 billion.
The sale comes after Buffett cut his Apple stake by 13% in the first quarter, citing potential tax benefits if capital gains taxes are raised.
However, such massive selling may be influenced by other factors, such as company-specific reasons or portfolio management strategies to prevent a single holding from becoming too dominant.
Buffett recently began to pare down his second-largest holding — Bank of America, shedding $3.8 billion worth of the bank's stock after a 12-day selloff.
Overall, the quarterly report showed Buffett dumping stocks last quarter, which saw the S&P 500 rise to a record on expectations for the US economy.
Apple shares saw a 23% rise in the second quarter, hitting new highs as it detailed future plans in artificial intelligence, which may have influenced Buffett's timing.
Buffett's relationship with technology stocks, particularly Apple, marks a departure from his traditional investments.
Under the influence of his lieutenants, Ted Weschler and Todd Combs, Buffett increasingly favors Apple, significantly increasing Berkshire's holdings over the years.
This strategic move reflects Buffett's adaptive investment approach, balancing his long-term commitment with responsive adjustments to market conditions and company performance.
