Berkshire Exits $1B T-Mobile Stake as Stock Slides to 71st in $850M Volume

T-Mobile US (TMUS) fell 0.33% on 0.85 billion in volume on August 21, ranking 71st in trading activity. The stock’s five-year gain exceeds 120%, but recent performance has moderated. Berkshire Hathaway’s decision to exit its TMUS stake—valued at over $1 billion—signals a strategic shift, despite the carrier’s strong operational metrics and industry-leading customer growth.

The investment firm initiated its TMUS position in late 2020 and has since realized significant gains. T-Mobile’s forward P/E ratio now exceeds 23, reflecting robust earnings and dividend growth. While the exit may indicate Berkshire views the stock as fairly valued, TMUS continues to report strong financials, including 14% year-over-year earnings growth and 12% 5G broadband customer expansion.

A backtest of a strategy buying the top 500 stocks by daily volume and holding for one day from 2022 to 2025 yielded a 7.61% total return over 365 days, with a 1.98% average daily gain. The Sharpe ratio was 0.94, but the strategy faced a maximum drawdown of -29.16%, highlighting volatility risks.