Warren Buffett Unloads $1.2 Billion of VeriSign Amid Sharp Trim of Tech Stock Position

Warren Buffett's Berkshire Hathaway has significantly cut its stake in VeriSign, selling $1.2 billion worth of shares. Buffett's decision to unload a high-performing tech stock like VeriSign is unusual and has investors wondering why. Buffett has historically favored digital infrastructure over disruption, and VeriSign fits this mold. Berkshire's cash stockpile has surged to a record $347.7 billion, indicating patience in the stock market.

Warren Buffett's Berkshire Hathaway has significantly reduced its stake in VeriSign, selling $1.2 billion worth of shares. This move has sparked curiosity among investors, given Buffett's historical preference for digital infrastructure over disruptive technologies. VeriSign, a key player in internet infrastructure, operates .com and .net domain registries and two of the internet's 13 global root servers.

The sale, which includes 4.3 million shares at $285 per share, brings Berkshire's ownership below the 10% regulatory threshold, thereby avoiding additional disclosure and compliance obligations [1]. This transaction is part of Berkshire's broader strategy to streamline its investment portfolio and focus on more liquid assets. Berkshire has held VeriSign shares since 2012, achieving a return of over five times its initial investment [2].

VeriSign's operational performance remains robust. The company reported second-quarter earnings of $2.21 per share, topping forecasts, and raised its full-year revenue forecast to between $1.645 billion and $1.655 billion [1]. Despite the recent sale, VeriSign shares are trading about 8.2% above their 50-day simple moving average and have seen a year-to-date increase of approximately 49% [1].

Berkshire's decision to sell a portion of its VeriSign shares is strategic, reflecting its commitment to optimizing its investment portfolio. The sale underscores Buffett's reputation as a savvy investor who maximizes returns and minimizes risks. The proceeds from the sale will help Berkshire maintain financial flexibility and navigate market fluctuations [2].

The sale of VeriSign shares is not Berkshire's only recent move. The company has also been involved in other significant transactions, including a $5.7 billion private aviation financing deal, indicating a focus on diversifying investments [2]. Berkshire's cash stockpile has surged to a record $347.7 billion, suggesting patience in the stock market [1].

References:
[1] https://www.aol.com/verisign-stock-falls-berkshire-hathaway-125213893.html
[2] https://www.ainvest.com/news/berkshire-hathaway-sells-33-verisign-stake-6-9-discount-2507/