Berkshire Hathaway cut its Apple position mainly to realize gains while the tax rate Warren Buffett cited was 21%, manage the size of an unusually large holding, and keep cash available for other investments. Buffett did not say Apple’s business had failed: at Berkshire’s 2024 annual meeting, he said Apple would probably remain the company’s largest common-stock holding.
What does the 55.8% figure mean?
It is an approximate reduction, not a single percentage reported by Berkshire in an SEC filing. Berkshire disclosed selling a little over 116 million Apple shares in the first quarter of 2024—about 13% of its position—leaving nearly 790 million shares, according to the Associated Press. It then roughly halved the position in the second quarter. Applying those rounded reductions to the year-end holding produces a cut of about 56.5%, rather than exactly 55.8%. The difference reflects the rounded figures used in reports; it is more accurate to treat 55.8% as an approximation than as a precise filing number.
The selling continued after that first-half reduction. The Associated Press reported that Berkshire sold about 100 million additional Apple shares in the third quarter. At the end of September 2024, the remaining stake was valued at about $69.9 billion, also according to the AP. These are dated 2024 figures, not a statement of Berkshire’s current Apple holdings.
Why did Buffett say Berkshire was selling?
Realizing gains at the tax rate he cited
At Berkshire’s May 2024 annual meeting, Buffett explained the sale by comparing the 21% rate he referenced for that year with the possibility of a higher rate later. He said: “And if I’m doing it at 21 percent this year, and we’re doing it at a lot higher percentage later on, I don’t think you’ll actually mind the fact that we sold a little Apple this year.” His remarks are the clearest public explanation for the timing: Berkshire could realize some gains at the rate he cited rather than wait amid his expectation that the rate might rise.
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That was Buffett’s stated reasoning, not a guarantee that tax rates would rise or a published forecast of when or by how much they might change. The annual-meeting remarks do not give Berkshire’s precise tax-rate forecast or a complete accounting of the tax consequences of each trade.
Reducing the weight of a very large holding
Apple had appreciated into an exceptionally large position in Berkshire’s equity portfolio. Selling some shares reduced that concentration and freed capital from a single holding. That portfolio-management explanation fits the scale of the sales, although Berkshire has not published an internal Apple valuation target or a threshold that triggered them.
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Keeping cash available
Berkshire was also accumulating cash while waiting for attractive opportunities to invest. Selling a large appreciated position adds liquidity and gives the company more flexibility about where and when to deploy capital. It does not, by itself, establish that Buffett had identified a particular replacement investment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Was the sale a sign that Buffett had turned bearish on Apple?
Not on the evidence Buffett provided publicly. He said Apple would probably remain Berkshire’s largest common-stock holding, even after the reductions. That is consistent with trimming a position that had become very large while retaining substantial confidence in the company. It is not proof that Buffett had no concerns about Apple; rather, he did not publicly identify a specific business problem as the reason for the sales.
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Claims that Berkshire sold because of a particular Apple valuation multiple, weakness in China, a product-cycle concern, or a succession decision go beyond the stated explanation. Berkshire’s 2024 Form 10-K provides authoritative context for its investments, taxes, and cash, but neither that filing nor Buffett’s annual-meeting comments disclose a precise Apple valuation target or a full account of who authorized each trade.
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How to weigh the explanations
| Explanation | What the public evidence supports | What it does not establish |
|---|---|---|
| Tax timing | Buffett directly connected selling some Apple shares with realizing gains at the 21% rate he cited in May 2024, against the possibility of higher rates later. | That a future rate increase was certain, or the exact tax effect of each sale. |
| Position size and concentration | Apple was an exceptionally large holding after its appreciation, and Berkshire materially reduced the position. | A specific internal valuation, target weight, or trigger for the trades. |
| Cash and flexibility | Berkshire was building cash while waiting for attractive investment opportunities. | That the Apple sale funded a particular purchase or that Berkshire had settled on a replacement investment. |
| A loss of confidence in Apple | Buffett said Apple would probably remain Berkshire’s largest common-stock holding. | A disclosed verdict that Apple’s products or economics had failed; Buffett did not give that as his reason. |
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