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

Berkshire Hathaway sold $12 billion in stocks in the third quarter, continuing a trend of net selling for several years. Apple and Bank of America became the primary targets for reduction, while the company also purchased $6.4 billion in stocks, with most new positions concentrated in the commercial and industrial categories.

Berkshire's latest 10-Q report for the third quarter shows $12.4 billion in stock sales and $6.4 billion in stock purchases, realizing capital gains of about $10 billion. According to media estimates on Friday, as of June 30, Berkshire, which held 280 million shares of Apple, may have reduced its holdings by about 35 million shares in the third quarter; meanwhile, its holdings in Bank of America were reduced by 50 million to 100 million shares from just over 600 million shares at the end of June. This estimate is based on the relevant financial data disclosed in Berkshire's third-quarter 10-Q report.

Berkshire is expected to release its quarterly 13-F report on Friday evening, detailing its holdings in U.S. listed securities as of September 30. Friday is the deadline for submitting 13-F filings, and Berkshire typically waits until the last day to submit.

This stock trading continues CEO Warren Buffett's consistent strategy—he often gradually reduces large positions over multiple quarters. Berkshire's holdings in Apple have decreased from about 900 million shares at the end of 2023 to 280 million shares, while its holdings in Bank of America have declined by 40% since July 2024.

Large Reductions Targeting Apple and Bank of America

The high capital gains relative to the $12 billion in stock sales point to long-term holdings like Apple and Bank of America, which have a lower cost basis.

Another key clue comes from Berkshire's "consumer goods" category, where the cost basis of stocks decreased by about $1.2 billion in the third quarter. Apple is likely included in this category—Berkshire categorizes its approximately $300 billion stock holdings into three main categories: consumer goods, financials, and commercial industrial and others.

According to disclosures from a few years ago, Berkshire's cost basis for Apple stock is about $35 per share, and selling about 35 million shares aligns perfectly with the $1.2 billion reduction in cost basis.

New Positions Concentrated in the Industrial Sector

While significantly reducing its holdings, Berkshire also purchased $6.4 billion in stocks in the third quarter. The 10-Q report shows that the increase in cost basis is mainly concentrated in a broad range of commercial and industrial categories, indicating that new positions belong to this sector.

Investors are also paying attention to whether Berkshire increased its holdings in some newer stocks in the third quarter, including UnitedHealth Group, Lennar, and Nucor.

Berkshire purchased 5 million shares of UnitedHealth Group in the second quarter, currently valued at about $1.7 billion. The disclosure of this new investment in mid-August had previously driven up the stock price of UnitedHealth Group.

Continued Trend of Net Selling for Years

Berkshire's net stock selling has been a trend for many years. The $12.4 billion in sales and $6.4 billion in purchases in the third quarter resulted in a net selling scale of $6 billion. Buffett typically adopts a gradual reduction strategy when managing large positions to avoid concentrated selling in a single quarter that could impact the market.

Although the scale of this reduction is considerable, Berkshire's holdings in Apple and Bank of America remain substantial. Even after estimating a reduction of 35 million shares of Apple stock, the company still holds about 245 million shares; Even if Bank of America reduces its holdings by 100 million shares, it will still remain above 500 million shares.

Friday's 13-F report will reveal the exact changes in holdings, providing the market with a complete picture of Berkshire's investment strategy adjustments