Berkshire Hathaway, a firm overseen by Warren Buffett, disclosed a substantial decrease in its stake in Apple Inc. as shown in their 10-Q report for the second quarter. The value of Berkshire's Apple holding plummeted to $84.2 billion at the end of the second quarter, marking a noteworthy 38% decline from the previous quarter's $135.4 billion. In terms of shares, it is calculated that Berkshire, which previously held 789.37 million shares of Apple, may have been left with approximately 399.77 million shares, indicating a notable 49.36% reduction in their Apple stake.
As Apple reported its quarterly results, the tech giant declared a cash dividend of 25 cents per share, scheduled to be paid out on August 15 to shareholders listed as of August 12. If Berkshire had retained its original 789.37 million Apple shares, it could have potentially earned a dividend income of slightly over $197 million, whereas the estimated 390 million shares that were sold by Berkshire could have yielded a dividend income of $97.5 million for the firm. The reduction in Apple shares came amidst Berkshire's broader strategy, which in the past involved selling Apple shares to raise cash during economic uncertainties and to cover federal taxes, as stated by Buffett during the March quarter.
Jim Cramer, host of CNBC's Mad Money show, interpreted Berkshire's move as potentially linked to concerns about Apple's performance in China. Apple recorded a 6.54% year-over-year decrease in Greater China revenues during the June quarter, with CEO Tim Cook attributing the weakness to macroeconomic conditions and local competition. Cramer's analysis diverged from the idea that linked Buffett's decision to Apple's China risks, as he highlighted Apple's relatively strong performance in China during the quarter. Additionally, concerns and discussions around Berkshire's actions and Apple's performance have been ongoing among market commentators and analysts.