Berkshire Hathaway, the investment company led by Warren Buffett, has decided to significantly reduce its stake in Apple. The investment, now amounting to $84.2 billion, represents approximately half of the firm’s previous position in the tech giant, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

Despite this sale, Apple remains by far the largest individual investment in Berkshire Hathaway’s portfolio. This decision follows an earlier 13% reduction in its stake in Apple earlier this year, which Buffett suggested was partly for tax reasons, stating that he didn’t mind selling “a little bit of Apple” for such purposes.

According to analyses by the Financial Times, the sale of these shares has generated enormous profits for Berkshire Hathaway. It’s noteworthy that Buffett, historically reluctant to invest in technology, began acquiring Apple shares in 2016, marking a significant shift in his investment strategy. This recent sale could be interpreted as a sign of a potential decline in confidence in Apple’s future or simply as part of a broader asset liquidation strategy, as Berkshire Hathaway has also recently sold $3.8 billion worth of Bank of America shares.

This SEC filing coincides with Apple’s announcement of its third-quarter results, which highlighted the growth in iPad sales as a positive note, although global iPhone sales declined for the second consecutive quarter, partly due to intense competition in China from companies like Huawei.

Apple CEO Tim Cook mentioned that the company is redirecting resources to prepare for the launch of Apple Intelligence, a set of artificial intelligence features they plan to introduce this fall. This initiative underscores Apple’s continued focus on innovation and adaptation to new technological market demands.

By: Nestor Castillo, ForAllTechNews Director