In the third period, Warren Buffett reduced his Apple stake by approximately a quarter.

For four consecutive quarters, Warren Buffett reduced his largest equity stake by selling a significant portion of it.

At the end of September, the Omaha-based conglomerate had $69.9 billion worth of Apple shares, according to its third-quarter earnings report. This implies that Buffett sold about a quarter of his stake, leaving 300 million shares in the holding. The stake is now down 67.2% from the end of the third quarter last year.

In the fourth quarter of 2023, the Oracle of Omaha began reducing his stake in the iPhone manufacturer, and he increased his selling in the second quarter by unexpectedly disposing of nearly half of his investment.

The reason for the continuous selling of the stock Berkshire first bought more than eight years ago is unclear. Some speculated it was due to high valuations and portfolio management to reduce concentration. Berkshire's Apple holding was once so big that it took up half of its equity portfolio.

At the Berkshire annual meeting in May, Buffett suggested that the sales were for tax reasons, as he speculated that the tax on capital gains could increase in the future due to the U.S. government's need to reduce its fiscal deficit. However, the significant size of the sales led many to believe that it was more than just a tax-saving move.

In 2016, Berkshire started investing in the stock under the guidance of Buffett's lieutenants Ted Weschler and Todd Combs. Prior to Apple, Buffett had largely shied away from technology companies, considering them beyond his area of expertise.

The investor, renowned for his investments, became enamored with Apple due to its devoted customer base and the iPhone's stickiness. Over time, he increased his Apple holdings to become Berkshire's largest investment, and once referred to the tech giant as the second-most significant business after his insurance conglomerate.

In the third quarter, Berkshire's cash reserves hit an all-time high of $325.2 billion, while the company temporarily halted its buybacks.

Although Apple shares have increased by 16% year-to-date, they are still lagging behind the S&P 500's impressive 20% rise.