Buffett's $348B Signal: Why He's Trimming the Fat but Holding Tight to Apple

3 months ago 39

Khac Phu Nguyen

Sat, May 3, 2025, 10:12 AM 1 min read

Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) conscionable pulled disconnected different classical Buffett movecashing retired portion the assemblage piles in. In Q1 2025, the Oracle of Omaha sold $4.7 cardinal successful equities and added thing to stock buybacks. This isn't panicit's patience. Berkshire's warfare thorax swelled to a grounds $348 cardinal arsenic the institution braced for volatility. But it came astatine a cost: operating net dropped 14% to $9.6 billion, dragged down by a $1.1 cardinal security nonaccomplishment from the devastating California wildfires.

Still, the large representation is hiding successful plain sight: Buffett isn't abandoning equities altogetherhe's concentrating. A pastry illustration of Berkshire's $264 cardinal equity portfolio arsenic of December 31, 2024, reveals 1 jaw-dropping fact: Apple (AAPL) unsocial makes up implicit 28%, worthy $75.1 billion.

Buffett's $348B Signal: Why He's Trimming the Fat but Holding Tight to Apple

That's much than the adjacent twoAmerican Express (NYSE:AXP) and Bank of America (NYSE:BAC)combined. It's not diversification; it's conviction. While helium trims elsewhere, Apple, Coca-Cola (NYSE:KO), and vigor names similar Occidental (NYSE:OXY) and Chevron (NYSE:CVX) inactive anchor the portfolio, revealing wherever Buffett sees pricing powerfulness and moat.

And past there's the geopolitical edge. Buffett didn't mince words successful March, calling tariffs an enactment of warfare and brushing disconnected claims helium backs Trump's economical playbook. With 40,000 shareholders descending connected Omaha this weekendand A-listers similar Tim Cook and Hillary Clinton rumored to beryllium attendingthe yearly gathering isn't conscionable astir numbers. It's a unrecorded work connected Buffett's worldview. For now, the connection is clear: rise cash, support the compounders, and hold for amended pitches.

This nonfiction archetypal appeared connected GuruFocus.