Warren Buffett offloaded $51 billion of this blue chip stock in Q2

Core Insights - Warren Buffett has significantly reduced his stake in Apple, selling approximately $51 billion worth of shares in Q2 2024, bringing Berkshire Hathaway's investment in Apple down to around $84.2 billion from $135.4 billion at the end of Q1 2024 [1] - Despite Apple's strong performance with a 22% stock increase during the quarter, Buffett's divestment indicates a cautious approach amid ongoing market uncertainty [1][2] - Berkshire Hathaway's record cash reserves have reached $277 billion, reflecting a strategy to hold cash rather than heavily invest in equities [2] Investment Performance - As of June 30, 2024, Berkshire Hathaway's total cost basis in equity securities was $88.453 billion, with net unrealized gains of $196.418 billion, resulting in a fair value of $284.871 billion [3] - In comparison, the December 31, 2023 report showed a total cost basis of $109.416 billion, net unrealized gains of $244.426 billion, and a fair value of $353.842 billion [3] - The aggregate fair value remains concentrated in five companies: American Express, Apple, Bank of America, Coca-Cola, and Chevron [3] Earnings Overview - Berkshire Hathaway's profit for Q2 2024 dropped to $30.3 billion from $35.9 billion in the same period of 2023, indicating a decrease in operating earnings [4] - The after-tax operating profit surged 15% to $11.6 billion, driven by higher insurance underwriting profits and increased income from cash reserves [5] Stock Repurchase Activity - The company repurchased only $345 million of its stock in Q2 2024, one of the lowest quarterly totals in several years, compared to $2.6 billion in Q1 2024 [6] - Buffett has also reduced his stake in Bank of America by nearly $3 billion during this period [6] - Berkshire Hathaway's stock price has been affected by a general sell-off in the stock market, trading at $428 as of August 2, with losses of nearly 1% over the previous 24 hours [6]