Berkshire Hathaway to Reveal Apple Holdings, 50 Billion Dollar Mystery Investment

Tonight, the market's attention is focused on Berkshire Hathaway as it prepares to disclose its latest portfolio holdings. According to regulations, Berkshire Hathaway must file its 13F report with the SEC by August 14, detailing its equity holdings as of June 30. The company is known for filing its reports at the last possible moment, adding to the suspense.

This report is expected to answer two key questions: whether Berkshire Hathaway has continued to reduce its significant investment in Apple, and the identity of the mysterious stock purchase worth nearly 50 billion dollars. The mystery surrounding this investment has been fueled by clues from Berkshire's first and second-quarter financial reports. The company's 10-Q report for the second quarter indicated that its total equity investments, valued at nearly 300 billion dollars, are categorized into three main groups: financial, consumer goods, and "commercial, industrial, and other." The significant increase in the "commercial, industrial, and other" category, which saw a 20 billion dollar rise in the first quarter and an additional 28 billion dollars in the second quarter, has led analysts to speculate that the mysterious investment is likely a large industrial company.

Berkshire's strategy of keeping its holdings confidential during the accumulation phase is well-documented. This approach helps prevent premature disclosure of its investment strategies, which could otherwise attract significant follow-on buying and drive up the target company's stock price, increasing Berkshire's acquisition costs. Historical examples, such as the 70 billion dollar investment in insurance company AIG, which remained confidential until May 2024, and the 2020-2021 purchases of Chevron and Verizon, underscore the effectiveness of this strategy.

Another area of market interest is Berkshire's holdings in Bank of America. From the first quarter of 2024 to the second quarter, Berkshire reduced its stake in the bank by nearly 40%, bringing it down to 631 million shares. Estimates suggest that Berkshire may have sold an additional 40 billion dollars worth of Bank of America shares in the second quarter, indicating a strategic adjustment in its financial stock portfolio. This ongoing reduction in holdings reflects Berkshire's proactive approach to managing its investments in the current market environment.

As for Apple, the situation is more complex. Apple is the largest single holding in Berkshire's investment portfolio, accounting for approximately 25% of its total stock investments as of the first quarter. As of March 31, the market value of Berkshire's Apple holdings was 666 billion dollars. Throughout the year, Berkshire has indicated a willingness to make "rational adjustments" to its holdings when valuations are appropriate, leading to speculation that it may have resumed reducing its Apple position in the second quarter.