As the eighth-largest company in the world, Berkshire Hathaway has a market valuation of over $950 billion. Under the direction of CEO and well-known investor Warren Buffett, the business has produced amazing returns for its long-term investors and is still very prominent in the investing community.Â
Interestingly, the Oracle of Omaha has always favored aggressively weighting Berkshire’s stock holdings toward a select few high-conviction ventures rather than diversifying the portfolio. However, Buffett and Berkshire have recently made several very bold decisions, which have significantly changed the portfolio’s balance.
Buffett’s biggest stake remains this, despite significant changes
Keith Noonan (Apple): Berkshire Hathaway’s most recent 13F filing stunned everyone. Over 389 million shares of Apple (NASDAQ: AAPL) stock were sold, according to the investing conglomerate’s disclosure report filed with the Securities and Exchange Commission (SEC) earlier this month.
The action triggered worries that Buffett was losing faith in the tech leader as it cut Berkshire’s overall stake in the behemoth by 49%. However, Apple continues to be Berkshire Hathaway’s largest stock holding by a wide margin.
The stock of the iPhone business still makes up over 28.8% of Berkshire’s whole stock portfolio following the sell-off, which is more than three times higher than its second-biggest holding.
Buffett has previously opposed diversification, so it’s understandable why his company chose to lessen its exposure to the internet behemoth. At the height of its concentration and value, Apple comprised almost 50% of Berkshire’s entire stock holdings.
The Oracle of Omaha’s company has made enormous profits from the investment, and the most recent stock sale has produced even greater riches. However, until Buffett’s business releases its next 13F filing, the subject of whether Berkshire will continue to reap profits on its Apple investment is likely to remain a contentious one.
The best business
Although Buffett previously referred to Apple as “probably the best business” that he is aware of, there are still significant uncertainties over the company’s future. To begin with, it is unclear if Apple will be able to produce significant advancements in the field of artificial intelligence (AI).
Analysts and investors are particularly curious about the company’s ability to deliver significant new victories in the mobile and other hardware sectors that have the potential to spur rapid development.
Among the most prominent decisions made by institutional investors this year, Berkshire’s decision to reduce its holdings in Apple stands out. Buffett has lowered his company’s exposure to the mobile leader, but it appears that he still has a positive outlook on the stock as a whole.
