Here’s a bombshell for investors: Warren Buffett, the legendary long-term investor, might have further reduced Berkshire Hathaway’s massive stake in Apple during the third quarter. But here’s where it gets controversial—is this a strategic move for tax benefits, a cautionary signal about Apple’s valuation, or simply portfolio rebalancing? Let’s dive in.
During the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 3, 2025, Buffett’s words carried weight, but his actions in the market have been even more telling. A recent regulatory filing hints that Berkshire quietly trimmed its Apple holdings once again. In the latest quarterly report, the conglomerate revealed a $1.2 billion drop in the cost basis of its consumer products equity holdings—a category dominated by Apple. This suggests Buffett likely sold more Apple shares, capitalizing on the stock’s 24% surge in the third quarter.
And this is the part most people miss—Buffett’s relationship with Apple hasn’t been all roses. In 2024, he stunned the market by slashing two-thirds of Berkshire’s Apple shares, a move that raised eyebrows given his reputation for long-term investing. By the end of June, Apple remained Berkshire’s largest holding, with 280 million shares valued at $57 billion, but the writing was on the wall. Berkshire also trimmed its stake in the second quarter, leaving investors wondering: What’s Buffett’s endgame?
The full picture will emerge later this month when Berkshire releases its detailed 13F filing to the Securities and Exchange Commission, revealing all stock holding changes through September 30. Until then, speculation abounds. Buffett previously hinted that tax considerations drove some of the Apple sales, but skeptics argue the scale of the sell-off suggests deeper concerns about Apple’s sky-high valuation. Others see it as prudent portfolio management, given that Apple once accounted for over half of Berkshire’s investment portfolio—a concentration risk Buffett may have sought to mitigate.
Here’s the kicker: Berkshire has been a net seller of stocks for 12 consecutive quarters, raising over $6 billion in cash just this quarter. Meanwhile, Buffett’s favorite market valuation metric—the ratio of total U.S. stock market value to gross national product—has hit an all-time high, a level he once warned was akin to “playing with fire.” Could this be a broader cautionary tale about market overvaluation?
As investors await clarity, one question lingers: Is Buffett’s move a tactical retreat or a strategic repositioning? What do you think? Are tax considerations, valuation concerns, or portfolio balancing driving Buffett’s decisions? Share your thoughts in the comments—this debate is far from over.
