Before Retiring, Warren Buffett Dumped $4.5 Billion Worth of 2 AI Stocks and Established a New Position in This 174-Year-Old Company

Core Insights - Warren Buffett's selling spree at Berkshire Hathaway resulted in a cash pile of $373 billion by the end of 2025, marking a historic trend of selling more stock than buying over the last 13 quarters of his tenure [1][2]. Group 1: Apple Investment - Buffett significantly reduced Berkshire's stake in Apple, selling over three-quarters of its shares, which were initially valued at nearly $200 billion in 2023, leaving a remaining worth of about $60 billion [4][7]. - The trailing P/E ratio of Apple increased from around 10 when Buffett first invested to 34 by the end of 2025, indicating a substantial rise in valuation [6]. - Despite the reduction, Apple remains the largest marketable equity position in Berkshire's portfolio, accounting for approximately 19% [7]. Group 2: Amazon Investment - Buffett began selling Berkshire's Amazon shares, totaling an estimated $4.5 billion, after holding a stable position since early 2019 [2][9]. - The P/E ratio of Amazon decreased to 32 by the end of 2025, down from 80 when Berkshire initially purchased shares, suggesting a relative value improvement [10]. - Concerns about Amazon's free cash flow arise due to a $200 billion capital expenditure budget for 2026, which may lead to negative cash flow for the year [11]. Group 3: New Investment in The New York Times - Buffett initiated a new investment in The New York Times, a company with a long history dating back to 1851, during a time when the print media industry faces significant challenges [15]. - The New York Times reported a 9% revenue increase in 2025, with an 18% rise in net income to $344 million, showcasing its successful digital transformation [17][20]. - Subscriber growth remains strong, with an increase of 1.4 million for the year, and 96% of its 12.8 million subscribers are digital-only, paying an average of $9.72 per month [20].