Apple Shares Decline

Apple shares dropped approximately 0.6% in premarket trading on Monday, following Berkshire Hathaway's disclosure of a substantial reduction in its Apple holdings during Q3.

The decline follows a 1.3% fall on Friday. According to Berkshire's quarterly report, released Saturday, Warren Buffett's firm sold around 100 million Apple shares over the summer, reducing its stake by 25% to about 300 million shares.

Despite these sales, Apple remains Berkshire's largest stock position, valued at roughly $69.9 billion. These sales accounted for a significant portion of the $36.1 billion in total stock sales by Berkshire in the quarter, which included Bank of America shares.

In 2024 alone, Berkshire has disposed of more than 600 million shares of the iPhone manufacturer.

Buffett's decision to lessen exposure to Apple aligns with his earlier comments in May, which acknowledged Apple's role as a core holding while suggesting that realizing profits was prudent amid potential future federal tax increases on investment gains.

Alongside the reduction in Apple holdings, Berkshire reported a 6% decline in quarterly operating profit due to factors like rising insurance liabilities, currency losses, and the repercussions of Hurricane Helene.

Nonetheless, Berkshire's BNSF railroad, Geico car insurance, and Berkshire Hathaway Energy units saw improved performance, benefiting from increased consumer shipments and decreased operating expenses.

For the eighth consecutive quarter, Berkshire has been a net seller of stocks, acquiring only $1.5 billion in equities and refraining from repurchasing its own shares, indicating Buffett does not view even Berkshire's stock as undervalued at this time.