"However, Buffett has shed well over half of his AAPL holdings in the past two years. Over the course of these past two years, Buffett has only had good things to say about Apple. At Berkshire's (NYSE:BRK-B) 2025 annual meeting, Buffett jokingly commented that Tim Cook made Berkshire more money than he himself did. After all, AAPL stock constituted over 50% of Berkshire Hathaway's portfolio for a long period of time."
"The rationale behind this is likely Benjamin Graham, specifically his book "The Intelligent Investor". Warren Buffett first read Benjamin Graham's The Intelligent Investor in 1949 when he was 19 years old. In the book, Graham advises that investors maintain a 75/25 balance between stocks and bonds in their portfolio. This ratio is to be adjusted depending on whether or not the investor thinks the market is expensive or cheap."
Warren Buffett reduced more than half of Berkshire Hathaway's Apple holdings over the past two years despite speaking positively about Apple and acknowledging its outsized portfolio role. AAPL once represented over 50% of Berkshire's portfolio, and Buffett praised Tim Cook's contribution to Berkshire's gains. The selling campaign expanded beyond Apple to other longtime holdings beginning in late 2023 as Buffett shifted capital toward bonds. The move aligns with Benjamin Graham's guidance to maintain a flexible stocks-to-bonds allocation (commonly 75/25) and to adjust exposure based on market valuation.
Read at 24/7 Wall St.
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