Core Insights - Berkshire Hathaway's portfolio has undergone significant changes over the past year, with a notable reduction in its stake in Apple, reflecting a conservative investment strategy by CEO Warren Buffett [1][2][3] Portfolio Changes - Berkshire Hathaway dramatically reduced its stake in Apple from 789 million shares at the end of Q1 2024 to 300 million shares by the end of 2024 [2] - Apple stock, which accounted for approximately 50% of Berkshire's portfolio value in 2023, now represents only 22% of its holdings [3] - The other top five stocks in the portfolio—American Express, Bank of America, Coca-Cola, and Chevron—remain unchanged, but their positions have shifted, with American Express now at 14% [3] Cash Position - Berkshire Hathaway's cash position has reached a record high of $334 billion, attributed to the sale of Apple stock and a lack of reinvestment into other stocks [5][7] - The cash balance includes short-term investments, such as Treasury bills, which are highly liquid [7] Market Speculation - Speculation exists regarding Buffett's cash allocation strategy, with some analysts suggesting concerns about the economy or inflated stock values as potential reasons for holding cash [8] - Buffett's historical caution against market timing suggests that his current strategy may not indicate a unique insight into market conditions [9][10]