Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into This High-Yield Investment Instead

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Warren Buffett is one of the most successful investors of all time. He boasts a track record dating back nearly 70 years in which he has produced eye-popping returns for those willing to stick with him over the long run. If you’d bought shares of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) in 1965, when Buffett took control of the company, you’d have earned a cumulative return of 4,384,748% through the end of last year. By comparison, the S&P 500‘s cumulative return over that time was just 31,223%.

Buffett has overseen the growth of Berkshire’s investable assets, reaching well over $600 billion today. But Buffett hasn’t seen a lot to like in the stock market recently. In fact, he’s made some big sales of two of Berkshire’s largest stock holdings in recent quarters, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). At the same time, he’s piled most of the money from those stock sales and Berkshire’s ongoing operating income into one high-yield investment.

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Image source: The Motley Fool.

Buffett (through Berkshire) sold off $133 billion worth of stock through the first nine months of 2024.

The bulk of that was Apple stock. Berkshire held 905.6 million shares of Apple at the start of the year. The stock made up nearly half of the entire equity portfolio Buffett and his team managed. But Buffett has significantly cut down on that position so far this year.

He sold 116 million shares in the first quarter, 389 million shares in the second quarter, and 100 million shares in the third quarter. The entire stake stands at 300 million shares today. That said, those shares are worth about $70 billion, as of this writing, accounting for over 23% of Berkshire’s entire equity portfolio. That means Apple is still Berkshire’s largest equity position. Buffett said it’s extremely likely Apple will be the largest common stock holding in Berkshire’s portfolio at the end of the year during Berkshire’s shareholder meeting in May.

There’s a chance Buffett will continue selling off Berkshire’s stake in Apple during the fourth quarter, though. Shares hit a new all-time high in October, and continue to trade around that level as of this writing.

Buffett has also turned his attention to Berkshire’s stake in Bank of America recently. Between July and October, Berkshire sold at least $10.5 billion worth of shares in the bank stock. Berkshire’s stake in the company fell below 10% as a result of the sales, so investors will have to wait until Berkshire’s next earnings report and 13F filing to see if Buffett continued to trim the position. Considering the stock currently trades at a price higher than every previous sale from Berkshire, there’s a good chance Buffett continued selling.

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