Core Insights - Berkshire Hathaway's decision to significantly reduce its Apple stock holdings in 2024 and 2025 has resulted in an estimated loss of about $50 billion in unrealized gains [1][3]. Group 1: Apple Stock Holdings - As of June 30, 2023, Berkshire's Apple holdings decreased from 906 million shares at the end of 2022 to 280 million shares, with most of the reduction occurring in Q2 2024 [3]. - The sale of two-thirds of its Apple stake was unexpected, as Warren Buffett previously regarded Apple as one of the four pillars of Berkshire's value, alongside its insurance, utility, and railroad businesses [3]. Group 2: Financial Impact - Berkshire's initial average purchase price for Apple shares was approximately $35 per share, while the average selling price was around $185 per share, yielding over $90 billion in pre-tax gains [4]. - With Apple's current share price near $262, the missed appreciation on the sold shares amounts to about $50 billion [4]. - The company incurred nearly $20 billion in corporate income taxes from the sale, reducing net gains to approximately $155 per share [4]. Group 3: Reasons for Selling - Buffett hinted at potential future increases in corporate tax rates as a factor in the decision to sell [5]. - Observers noted that the reduction was necessary to lower the high concentration of Apple in Berkshire's portfolio, which once exceeded 40% [5]. - There is speculation that Buffett aims to bolster cash reserves before stepping down as CEO by the end of 2025, with cash holdings exceeding $330 billion as of June 30 [5]. Group 4: Other Holdings - Berkshire also reduced its stake in Bank of America by approximately 40%, selling around 400 million shares, which has resulted in an unrealized gain of about $4 billion due to the stock's price increase [6][8]. - Berkshire's Class A shares have risen about 9% this year, lagging behind the S&P 500's total return of 16%, with the Apple reduction potentially being a contributing factor [9].