Core Viewpoint - Berkshire Hathaway's recent reduction in its Apple stake appears to be a strategic move to manage an oversized position rather than a sign of declining confidence in Apple's business [1][2]. Group 1: Berkshire's Position in Apple - As of September 30, Berkshire Hathaway owned 238.2 million shares of Apple, down from 280.0 million shares three months prior [5]. - The current value of Berkshire's Apple position exceeds $65 billion, making it the largest holding, significantly ahead of its second-largest holding, American Express, valued at approximately $57 billion [6]. - Apple's stock represents about 20% of Berkshire's total equity portfolio and approximately 6% of Berkshire's total market capitalization, which is around $1.07 trillion [6][7]. Group 2: Future Outlook and Management Strategy - The recent selling of Apple shares is likely a response to concentration risk after years of compounding, rather than a bearish outlook on the tech company [8]. - There is speculation that Berkshire may continue to sell Apple shares to maintain a 20% position in its equity holdings for risk management purposes, but further selling beyond this level is considered unlikely [9]. - Berkshire's substantial cash reserves, totaling $354.3 billion, provide flexibility for capital deployment, which may influence the decision to retain remaining Apple shares under new management [10][11]. Group 3: Apple's Business Performance - Apple's recent earnings report indicated an 8% year-over-year revenue increase to $102.5 billion for the fourth quarter of fiscal 2025, with expectations of accelerated growth during the holiday quarter [13]. - Management anticipates revenue growth of 10% to 12% year-over-year for the upcoming quarter, supported by strong demand for the iPhone [13][14].