According to reports, Berkshire Hathaway has reduced its stake in Apple Inc. by almost half of its initial stake. This was revealed when the company released its 2024 second-quarter report.
On Saturday, August 3, 2024, Warren Buffett’s Berkshire Hathaway quarter reports showed its Apple holdings valued at $84.2 billion. Additionally, the report showed that the company had dropped its share numbers from 790 million to 400 million.
Hathaway Slashed Its Investment in Apple
The reduction in share numbers was particularly surprising given Buffett’s reputation for investing and hoarding stocks. However, this is not the first time that the company has reduced its share numbers in the $3.3 trillion tech giant.
In the fourth quarter of 2023, Berkshire Hathaway sold 10 million Apple shares, equivalent to 1% of total stocks. Subsequently, between January and March 2024, the company reduced its share count by another 13%.
However, despite the reduction in its share number, the company’s cash reserves hit $277 billion for the second quarter of 2024. According to its quarterly reports, in the first quarter of 2024, Berkshire Hathaway reported about $189 billion in cash and equivalents.
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Subsequently, in the second quarter of 2024, Berkshire Hathaway generated $75.5 billion in stock sales. In addition to Apple, the company reduced its shares in Bank of America to $41.1 billion.
What Does Berkshire Hathaway Do?
Berkshire Hathaway is an American multinational conglomerate headquartered in Omaha, Nebraska. Founded in 1839, it was originally a textile company. However, the company became a significant corporation in 1965 when Warren Buffett and Charlie Munger took over.
Buffett became the company’s chairman and CEO, while Munger became its vice chairman. Since the takeover in 1965, the company’s revenue has been generated from a wide range of subsidiaries, stock holdings, and other securities.
In addition to owning shares in other companies, Berkshire Hathaway operates several real estate and insurance subsidiaries. The company also has various investments in utilities, energy groups, manufacturing, clothing, and retailing.
Additionally, Berkshire Hathaway’s non-insurance business ventures include International Dairy Queen, CORT, Buffalo News, See’s Candies, and XTRA Corporation.
What Is Berkshire Hathaway’s Net Worth?
According to the second quarterly report of 2024, 72% of Berkshire Hathaway’s net value comes from its investments in five companies. According to the report, Berkshire has a stock value of $35.1 billion in American Express and $84.2 billion in Apple.
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Additionally, the company has $41.1 billion in Bank of America, $25.5 billion in Coca-Cola, and $18.6 billion in Chevron. As of August 6, 2024, Berkshire Hathaway’s market capitalization, or net wealth, is $917.32 billion. In just a single year, its market value has surged by 21.22%.
The company’s market capitalization has grown by 990.85%, from $84.09 billion to $917.32 billion, since December 1, 1998. That translates to a 9.75% compound annual growth rate.
Who Is the Owner of Berkshire Hathaway?
Oliver Chace founded the Valley Falls Company, a textile manufacturing firm in Valley Falls, Rhode Island, in 1839. Carpenter Chace began working for Samuel Slater, the man who established the first profitable textile mill in America.
In 1806, Chace established his first textile business. The 1889-founded Berkshire Cotton Manufacturing Company in Adams, Massachusetts, combined with the Valley Falls Company in 1929, becoming Berkshire Fine Spinning Associates.
In the mid-1960s, Warren Buffett became Berkshire Hathaway’s largest stakeholder. He then started a gradual process of transferring cash flows from the company’s main operations to other ventures.
With a market valuation of more than $715 billion as of May 2023, Berkshire Hathaway is among the biggest publicly traded corporations in the world. It has a solid track record of profitable operations and astute investments, making it the sixth-largest public company in the world in 2023.
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Why Is It Called Berkshire Hathaway?
When Oliver Chace founded the textile manufacturing firm, it was named the Valley Falls Company. The name came from the place where the company was founded: Valley Falls, Rhode Island.
However, in 1929, the Valley Falls Company merged with Berkshire Cotton Manufacturing Company, becoming Berkshire Fine Spinning Associates. Subsequently, in 1955, Berkshire Fine Spinning Associates merged with Hathaway Manufacturing Company. The merger created the company’s name, Berkshire Hathaway.
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