Time: 2024-08-04
Warren Buffett , the Oracle of Omaha , had a busy second quarter of 2024 as Berkshire Hathaway 's cash pile swelled to a record 76.9 billion . This came after Buffett sold almost half of his stake in Apple , among other stock holdings , marking a significant increase from the previous record of 89 billion set in the first quarter of the year.
Berkshire has been selling off stocks for seven consecutive quarters , with the selling accelerating in the last period . Buffett shed over 5 billion in equities in the second quarter alone , bringing the total stocks sold in the first half of 2024 to more than 0 billion . The selling trend continued in the third quarter , with Berkshire trimming its second biggest stake , Bank of America , for 12 consecutive days.
Despite the selling spree , Berkshire 's operating earnings saw a jump in the second quarter , reaching 1.6 billion , up about 15 % from the previous year . However , Buffett expressed caution at the annual meeting in May , stating that high prices make it challenging to deploy capital.
The Stock market has seen a surge in the last two years , with the S&P 500 reaching record levels . However , concerns about a slowing economy have emerged recently , fueled by weak data and disappointing job reports . Investors have also grown worried about valuations in the technology sector , which has been a driving force behind the market 's growth , particularly with concerns about artificial intelligence innovation.
Berkshire Hathaway Inc. saw a massive selling spree in the second quarter , with Buffett slashing the stake in Apple by almost 50 % . The conglomerate sold 5.5 billion worth of stock , pushing the cash pile to a record high . Operating earnings for the period rose to 1.6 billion , up from 0 billion the previous year.
Buffett 's selling activity coincided with the S&P 500 reaching record highs , but concerns about overvalued stocks have prompted worries of an economic downturn . Berkshire has struggled to deploy its cash , resorting to stock buybacks as one way to utilize the funds . The company repurchased about 45 million of its shares in the quarter , the lowest since changing its buyback policy in 2018.
Apple , one of Berkshire 's top holdings , reported a decline in sales to China , raising concerns about its performance in the overseas market . Despite hopes that new AI technology would drive sales , delays in upcoming features have caused some anxiety among investors . The scale of Buffett 's selling activity in the second quarter indicates that he may continue to adjust his positions in the future.
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