Did Berkshire significantly reduce its holdings of Apple and Bank of America in the third quarter?

Berkshire Hathaway sold $12 billion in stocks in the third quarter, continuing its years-long net selling trend. Apple and Bank of America were the main targets for reduction, while the company also purchased $6.4 billion in stocks, with most of the new holdings concentrated in the commercial and industrial categories. Berkshire’s latest Q3 10-Q report shows $12.4 billion in stock sales, $6.4 billion in stock purchases, and about $10 billion in capital gains. According to media estimates on Friday, Berkshire, which held 280 million shares of Apple as of June 30, may have reduced its holdings by about 35 million shares in the third quarter; its Bank of America position was also reduced by 50 to 100 million shares from just over 600 million shares at the end of June. These estimates are based on related financial data disclosed in Berkshire’s Q3 10-Q report. Berkshire is expected to release its quarterly 13-F report late Friday, which will detail its U.S.-listed holdings as of September 30. Friday is the deadline for submitting 13-F filings, and Berkshire usually waits until the very last day to submit. This stock trading activity continues CEO Warren Buffett's consistent strategy—he often reduces large positions gradually over multiple quarters. Berkshire’s holdings in Apple have fallen from about 900 million shares at the end of 2023 to 280 million shares, while its Bank of America holdings have decreased by 40% since July 2024. ## Major Reductions Point to Apple and Bank of America This high capital gain ratio relative to the $12 billion sales amount points to long-term positions with low cost bases, such as Apple and Bank of America. Another key clue comes from the approximately $1.2 billion decrease in the cost basis of Berkshire’s "Consumer" category stocks in the third quarter. Apple is likely included in this category—Berkshire divides its roughly $300 billion stock holdings into three main groups: consumer, financial, commercial and industrial, plus others. According to previous disclosures, Berkshire’s cost basis for Apple shares was about $35 per share, and selling about 35 million shares closely matches the $1.2 billion decrease in cost basis. ## New Holdings Focused on Industrial Sector Meanwhile, Berkshire also purchased $6.4 billion in stocks in the third quarter. The 10-Q report shows the increase in cost basis was mainly in the broad commercial and industrial category, indicating new holdings belong to this sector. Investors are also watching to see if Berkshire increased some of its newer positions in the third quarter, including UnitedHealth Group, Lennar, and Nucor. Berkshire purchased 5 million shares of UnitedHealth Group in the second quarter, currently worth about $1.7 billion. The disclosure of this new investment in mid-August previously drove UnitedHealth Group’s stock price higher. ## Years-Long Net Selling Trend Continues Berkshire’s net stock selling has been a multi-year trend. The third quarter’s $12.4 billion in sales and $6.4 billion in purchases brought net selling to $6 billion. Buffett generally prefers a gradual approach when managing large positions to avoid market disruptions from concentrated sales in a single quarter. Although the reduction size is substantial this time, Berkshire’s holdings in Apple and Bank of America remain huge. Even after the estimated sale of 35 million Apple shares, the company still holds about 245 million shares; and if Bank of America holdings are reduced by 100 million shares, it still has over 500 million shares. Friday’s 13-F report will reveal the exact changes in holdings, presenting a complete picture of Berkshire’s investment strategy adjustments to the market. Risk Disclosure and Disclaimer The market has risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not consider the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investments made on this basis are at your own risk.