Warren Buffett’s Berkshire Hathaway aggressively cut its equity exposure in the second quarter, selling a net $75.5 billion in stocks. This significant move included nearly half of its stake in Apple, boosting Berkshire’s cash reserves to $276.94 billion. Operating earnings for the quarter reached $11.6 billion.
Strategic Reductions
Berkshire also reduced its Bank of America stake to 12.15%, valued at over $35 billion. This sell-off followed a 75% surge in the bank’s shares since late October. Buffett highlighted the challenge of finding low-risk, high-return investments at Berkshire’s annual meeting in May.
Market Impact and Economic Concerns
The news of Buffett’s massive sell-off comes as the U.S. stock market faces turbulence, exacerbated by a softer-than-expected jobs report. Economic indicators suggest a rapid deceleration of the U.S. economy, leading major Wall Street banks to call for Federal Reserve rate cuts in September and November.
