Warren Buffett-led Berkshire Hathaway (NYSE: ) has significantly reduced its investment in Apple (NASDAQ: ) , selling nearly half of its shares in the tech giant.
According to the latest earnings report, Berkshire’s Apple stake was worth $84.2 billion by the end of the second quarter, indicating that it had sold off nearly 50% of its stake in the company. Despite the massive sale, Apple stock remains the largest holding in Berkshire’s portfolio.
Buffett hinted at Berkshire’s annual meeting in May that the sales were driven in part by tax considerations, suggesting that reducing the Apple stake could be beneficial to Berkshire shareholders if capital gains taxes increase in the future.
Apple Inc.’s stock had a strong second quarter, rising 23% to a new record high, helped by investor enthusiasm for the company’s focus on artificial intelligence. The surge in the stock price came after a decline in the previous quarter amid concerns that Apple was lagging behind in AI innovation.
At one point, Berkshire’s investment in Apple represented half of its entire stock portfolio.
In addition to Apple, Buffett has been actively reducing his stakes in other major companies.
It is worth noting that the company has also begun reducing its stake in Berkshire’s second-largest investment, Bank of America.
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