Warren Buffett's Recent Stock Sales: Insights on Apple, American Express, and More

Warren Buffett ended 2024 with a significant amount of cash, but a closer examination of Berkshire Hathaway's portfolio shows that his investment strategy is still evolving.

Recent filings indicate that while major holdings like American Express (AXP) and Coca-Cola (KO) remain stable, Buffett is choosing to reduce his stakes in some previously favored stocks.

"Warren Buffett has been selling for a reason, which is not indicative of a loss of faith in investing," says Steven Kibbel, a certified financial planner and advisor. "He's holding a record cash position, indicating he's waiting for better investment opportunities."

Buffett has long been cautious about high stock valuations. "When the total market cap of U.S. stocks exceeds GDP by a notable margin, it's a red flag," Kibbel explains. "Currently, we are in that caution zone."

Overall, Berkshire Hathaway sold equity stakes totaling $143 billion in 2024, leading to a cash position of $334 billion. Although Buffett hasn’t detailed this shift to cash in his annual letter to shareholders, hints are evident.

He mentioned, "Despite opinions regarding our cash reserves, the majority of your money remains invested in equities, and that preference will not change." He reassured shareholders that Berkshire will continue holding significant investments in stocks, mainly those based in America, even if these companies have considerable international operations.

Berkshire’s fast growth over six decades is noteworthy. Buffett highlighted how much the company has evolved, especially in terms of taxes. He pointed out that in 1965, Berkshire didn’t pay any income tax, but 60 years later, they contributed approximately $26.8 billion in corporate income taxes—one of the highest amounts from any company in U.S. history.

Key Stocks Buffett is Selling

The latter part of 2024 saw Buffett trimming his holdings, particularly in the financial sector.

According to Kibbel, "Bank stocks have significantly decreased. With rising interest rates, banks face challenges in lending, and the unpredictable economy makes their future profits harder to forecast."

Here’s a closer look at three significant stocks that Buffett has reduced his position in:

Apple

Berkshire sold about 67% of its investment in Apple Inc. (AAPL) during 2024, mostly in the first three quarters. The portfolio still retains $75.1 billion worth of Apple shares. As Apple’s stock has seen a decline of -14.8% in 2025, Buffett's decision to reduce his stake appears to be prudent.

Some analysts believe Buffett's reduction in Apple is due to concerns about risk. "When a single stock comprises nearly half your portfolio, even someone like Buffett knows it’s time to balance," says John Beck, a financial consultant. "Apple’s dependence on China, increased regulatory scrutiny, and supply chain issues raise red flags for the long term."

However, others caution against overinterpolation of Buffett’s strategy. Robert R. Johnson, a finance professor, reminds investors that despite the reduction, Apple still represents a significant portion of Berkshire's holdings, indicating Buffett's continued confidence.

Bank of America

After the 2024 sell-off, Berkshire owns fewer shares of Bank of America (BAC) than the original 700 million shares purchased in 2017. Kibbel notes that buffer stock sales show Buffett’s careful approach in this volatile market.

Citigroup

Buffett’s reduction in financial stocks extends to Citigroup (C), where he sold over 70% of his stake in just one quarter. Experts suggest that interest rates are changing the landscape for banks, which affects profitability and regulatory conditions. Kibbel remarks, "If a leading financial expert like Buffett is reducing his stake in big banks, it should raise concerns for investors."

What Does It All Mean for Buffett’s Cash Position?

As 2025 progresses, it’s unclear what Buffett’s overall strategy will entail. However, he may have larger plans than merely cutting down his investment in certain stocks.

According to David I. Kass, a finance professor, Buffett may feel stocks like Apple are currently overvalued while still being concerned about future inflation. Furthermore, raising cash could facilitate a smooth transition for Greg Abel, who is anticipated to take over as Buffett’s successor.

Buffett’s recent stock sales should not be interpreted as a sign that he believes these companies are struggling. Instead, the intention is to stay prepared for future investments.

Berkshire’s continual evolution makes it essential for investors to understand the rationale behind Buffett's decisions. As David Capablanca, a short-selling specialist, suggests, the key doesn’t lie in merely following Buffett’s moves but grasping the intentions behind them. "He is positioning himself to seize potential opportunities while maintaining plenty of liquidity during downtowns in the market," he adds.

In summary, Buffett is strategically selling stocks not out of fear but as a part of a well-planned investment approach. Investors might consider observing Buffett's moves carefully, but they should engage with their strategies rather than replicating them blindly.

Photo: Shutterstock

Buffett, Stocks, Selling