Warren Buffett’s Berkshire Hathaway has implemented significant changes to its investment portfolio in the third quarter of 2024, notably reducing its stake in Apple by 25% and scaling back on other major tech and banking stocks. This strategic pivot reflects a broader shift towards more traditional consumer-oriented businesses.
- Major Reductions: Berkshire Hathaway sold off 100 million shares of Apple, although Apple remains its largest holding. The conglomerate also substantially reduced its holdings in Bank of America, by about 235 million shares.
- Portfolio Rebalancing: Despite reductions in tech and banking, Berkshire maintained its investments in American Express and Coca-Cola, underscoring a strategic emphasis on stability.
- New Investments: The addition of Domino’s Pizza and Pool Corporation to Berkshire’s portfolio indicates a move towards companies with established consumer markets and predictable revenue streams.
- Defensive Stance: The adjustment away from tech stocks and traditional banking sectors suggests a more cautious approach to market volatility and inflated valuations.
- Value Investing Focus: Reflecting Berkshire’s traditional investment philosophy, the latest moves favor businesses with strong cash flows and significant market presence, aiming for long-term value rather than short-term gains.
These changes in Berkshire Hathaway’s investment strategy could signal new trends in institutional investing, particularly in how major players are responding to uncertainties in the tech sector and ongoing changes in the financial markets.
