Berkshire Hathaway Sells Apple and Bank of America to Focus on High-Yielding Investment

Warren Buffett's Berkshire Hathaway has generated $174 billion in net sales of stocks in 30 months, selling large fractions of its stakes in Apple and Bank of America. Buffett has been piling into a high-yield investment offering a 4.3% yield, expected to pay out $13.5 billion in 2025. Berkshire Hathaway's strategy focuses on determining if a business is worth more or less than its market price.

Warren Buffett's Berkshire Hathaway has recently generated $174 billion in net sales of stocks over the past 30 months, marking a significant shift in the company's investment strategy. The company sold large fractions of its stakes in Apple and Bank of America, leaving it with a substantial cash pile. This move has been part of Buffett's long-term strategy to determine whether a business is worth more or less than its market price.

The sale of Apple and Bank of America shares is particularly notable. Buffett initially purchased Apple shares in 2016 when it traded for around $25, and by late 2018, he had built a massive stake worth an estimated $36 billion. However, by late 2023, Apple's stock had climbed to above 30 times earnings, leading Buffett to start taking some cash off the table. Similarly, Buffett sold a significant stake in Bank of America, reducing his holding by 39%. These sales allowed Buffett to pile into a high-yield investment that is expected to pay out $13.5 billion in 2025.

Berkshire Hathaway's underperformance relative to the S&P 500 can be attributed to the company's holdings in stocks like Coca-Cola, Apple, and Wells Fargo, which have not performed well in recent years. Buffett's strategy of patiently holding onto undervalued stocks and reducing exposure to riskier assets reflects his long-term perspective.

Investors should remain patient and continue to monitor Buffett's decisions as he navigates the ever-changing market landscape. While Berkshire Hathaway's recent stock sales have led to a significant cash pile, the company's long-term success remains a testament to Buffett's investment philosophy.

References:
[1] https://www.telegraph.co.uk/business/2025/07/18/warren-buffett-has-set-alarm-bells-ringing-on-wall-street/
[2] https://finance.yahoo.com/news/warren-buffett-sold-apple-bank-080500592.html