Warren Buffett’s Berkshire Hathaway halved its stake in Apple in the second quarter, a selloff that could cost the Omaha-based conglomerate more than what Coca-Cola brings in in a year.
The average price of Apple stock that Berkshire cashed in on in the second quarter was about $186 apiece. That puts it at a gain of a little more than $150 per share, or about $59 billion, according to estimates by Barron’s. Given this sum, and federal and state income taxes of 25%, that could come out to $15 billion in tax payments this year.
For reference, Coca-Cola made $14.3 billion from the second quarter of 2023 to the first quarter of 2024. Berkshire owns 400 million shares of Coca-Cola, or roughly 9.3% of the company. (It’s also the 93-year-old investor’s drink of choice.)
Buffett has remained steadfast in his commitment to Apple’s stock, despite reducing Berkshire’s holdings.
“Unless something really extraordinary happens, we will own Apple, and American Express, and Coca-Cola when Greg takes over this place,” Buffett said during a question-and-answer session at the annual Berkshire shareholder conference in May, referring to Greg Abel, his handpicked successor.
Despite the selloff, Apple remains Berkshire’s biggest stock investment. It now holds $84.2 billion in the company’s stock, down from the $174.3 billion it owned at the start of the year. It has reduced its stake in the company for three consecutive quarters.
Apple shares are up nearly 20% so far this year, currently valued at $221 each. The stock has soared since Apple unveiled its AI plan in early June during its Worldwide Developers Conference. Analysts have predicted Apple shares will only continue to surge in the long term as they see its AI-powered iPhones revolutionizing the smartphone market.
Berkshire’s other biggest holdings include Bank of America Corporation ($41.1 billion) and the American Express Company ($35.1 billion), as of June 30. Buffett also sold off nearly $4 billion in Bank of America stock in over the course of 12 days in late June and early July.
— Laura Bratton contributed reporting.
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
