Warren Buffett's Berkshire Hathaway sells Apple stock due to uneven business results and AI momentum concerns.

Warren Buffett's Berkshire Hathaway has reduced its Apple stock holdings to 280 million shares, down from over 900 million. Uneven business results and underwhelming momentum in AI, as well as China-related challenges, may explain the move. Apple's stock has underperformed this year, down 10%, despite a gain for the S&P 500 and Nasdaq Composite. Berkshire's cash position of approximately $344 billion suggests a cautious approach to the market.

Warren Buffett's Berkshire Hathaway has significantly reduced its Apple (AAPL) stock holdings, down to 280 million shares from over 900 million. This strategic shift, announced in Q2 2025, reflects a combination of uneven business results, underwhelming momentum in AI, and China-related challenges [1].

Apple's stock has underperformed this year, declining by approximately 10%, despite gains in the broader market indices. The S&P 500 and the Nasdaq Composite both saw positive returns, with the S&P 500 up 8.4% and the Nasdaq Composite up 9.4% [2]. Berkshire's substantial reduction in Apple shares comes amid concerns about the company's financial health and strategic direction.

Uneven business results, including a 13% year-over-year increase in iPhone revenue and a 10% growth in total sales in Q3 2025, have not been enough to offset broader market concerns. Apple's trailing-12-month (TTM) revenue growth has been relatively sluggish, with a 4% increase over the last three years, compared to Microsoft's 39% growth [2].

Underwhelming momentum in AI has also been a factor. Apple's AI platform, Apple Intelligence, has not been a significant performance driver, and reports of internal development issues have led to delays in the launch of its Siri AI technology [2]. These challenges, combined with the company's underperformance in the saturated mobile market, have raised questions about Apple's ability to deliver new products and services that can drive growth.

China-related challenges have further exacerbated the situation. Weak performance in China, driven by government subsidies and tariffs, has contributed to Apple's stock underperformance. Sales in China were up 4% year-over-year in Q3 2025, but the country's economic conditions and regulatory environment remain uncertain [2].

Berkshire Hathaway's strategic shift is part of a broader reallocation of its $257.5 billion equity portfolio. The firm has built up a significant cash reserve of approximately $344 billion, reflecting a cautious approach to the market [1]. This liquidity buffer allows Berkshire to capitalize on undervalued assets during market corrections and is a strategic move to hedge against market overvaluation and anticipated fiscal uncertainty.

In contrast to its reduced Apple stake, Berkshire has increased its investments in sectors with durable competitive advantages and predictable cash flows. New investments in UnitedHealth Group, Nucor, and Chevron reflect a pivot toward healthcare, industrials, and energy [1]. These sectors are seen as offering better value and resilience in a high-debt, low-growth global economy.

For long-term value investors, Berkshire Hathaway's strategic shift provides a blueprint for navigating a challenging market environment. The key takeaways include rebalancing toward defensive sectors, prioritizing intrinsic value over momentum, maintaining a cash cushion, and adopting a contrarian stance [1].

References:

[1] https://www.ainvest.com/news/berkshire-hathaway-strategic-shift-decoding-buffett-apple-stake-reduction-cash-buildup-high-debt-era-2508/
[2] https://finance.yahoo.com/news/why-warren-buffett-dumping-apple-105000504.html