Berkshire Hathaway’s third-quarter earnings reveal significant stock sales

Warren Buffett’s Berkshire Hathaway sold over $36 billion in stocks during the third quarter of 2024. The company’s quarterly reports and required SEC filings provide insights into the primary stocks involved in this selling spree. Berkshire’s fair value for Apple at the end of the quarter was $69.9 billion, indicating ownership of around 300 million shares. This is 100 million fewer shares than at the end of June. Based on Apple’s stock price during the quarter, it is estimated that approximately $22.5 billion of the selling activity came from Apple. SEC filings also show that Berkshire sold around 235.17 million shares of Bank of America during the third quarter, totaling $9.61 billion. As Berkshire held a substantial stake in Bank of America, any buying or selling activities needed to be reported via Form 4 within two business days. Berkshire trimmed its stake in China-based BYD as well, selling 1,395,500 shares at an average price of HK$246.96 (approximately $31.76 USD per share), resulting in $44.3 million in proceeds.

Berkshire trims major holdings

This sale appears to be a strategic move to reduce Berkshire’s ownership stake in BYD below the 5% threshold. In total, nearly $32.15 billion of Buffett’s recent $36 billion selling spree can be attributed to just three stocks: Apple, Bank of America, and BYD. This activity highlights Buffett’s cautious approach amid an uncertain economic environment. The selling of Apple and Bank of America shares by Berkshire could be driven by the desire to capitalize on substantial unrealized gains while the corporate tax rate remains low. It may also be part of a broader strategy to increase cash reserves. Despite the modest sale, BYD continues to perform well, with third-quarter profits rising by double digits. The sale of BYD shares seems to be a move to minimize reporting requirements. This significant liquidating activity might indicate a strategic repositioning by Berkshire Hathaway, potentially preparing for future opportunities or expecting market volatility. Investors closely following Buffett will find these moves highly indicative of his market outlook.