Berkshire May Have Sold Apple, Bank of America Stock in Third Quarter

Customers outside an Apple store in Berlin earlier this year. (John Mcdougall / AFP / Getty Images)

Key Points

• Berkshire Hathaway may have sold portions of its Apple and Bank of America holdings in the third quarter, according to Barrons’ estimates.
• The company sold $12.4 billion of stocks in the period, realizing $10.4 billion in pretax gains, indicating sales of highly appreciated assets.
• Berkshire’s 10-Q report shows a $1.2 billion decrease in the cost basis of consumer stocks, potentially reflecting a sale of 35 million Apple shares.

Berkshire Hathaway may have sold part of its sizable stakes in Apple and Bank of America in the third quarter.

Berkshire didn’t disclose any sales of the two stocks in its recent earnings report or 10-Q report for the period, but the 10-Q offers some clues that the two stocks may have been sold.

Barron’s estimates that Berkshire may have sold about 35 million shares of Apple—in line with a projection that we made in an article on the company’s earnings on Sunday. It is also possible that Berkshire sold between 50 million and 100 million shares of Bank of America from its $300 billion equity portfolio.

The uncertainty likely will be resolved on Nov. 14 when Berkshire releases its 13-F report detailing its U.S.-listed equity holdings.

Here’s what we know now. Berkshire sold $12.4 billion of stocks in the period and realized $10.4 billion of pretax gains. That meant that whatever was sold had large embedded gains.

Berkshire is sitting on huge gains in its Apple holdings and likely has large gains in Bank of America as well, based on information in CEO Warren Buffett’s shareholder letter from 2021, where Berkshire disclosed the cost basis of its 15 largest stockholdings.

In the 10-Q, Berkshire also reported that its cost basis in consumer stocks fell by $1.2 billion. That could mean a sale of about 35 million Apple shares (which has a cost basis of $35 a share). Apple stock averaged about $230 a share in the period. That could have resulted in about $8 billion in Apple sales.

Buffett pared the Apple holding, which once totaled one billion shares, by about two thirds in 2024. Berkshire sold another 20 million shares in the second quarter and held 280 million shares on June 30 that are now worth about $75 billion. When Buffett starts cutting an equity holding, he often continues to do so over multiple quarters.

If Berkshire sold $8 billion of Apple, that would leave another $4 billion to reach the $12.4 billion of total equity sales in the third quarter. Bank of America would be a leading candidate, since Berkshire likely has big gains in that stock. Barron’s estimates that Berkshire’s cost basis is just $7 a share, and the stock averaged close to $50 a share in the third quarter.

Berkshire cut its stake in Bank of America by 26 million shares in the second quarter to 605 million shares, now worth $32 billion with the stock around $53. Berkshire had held one billion shares before the selling program began in July 2024.

These are just estimates, but don’t be surprised to see that Berkshire sold both Apple and Bank of America stock in the third quarter when it reports the information next week.

Write to Andrew Bary at andrew.bary@barrons.com