Berkshire Trades Apple and Bank of America for T-Bills as Buffett’s Conviction Wanes
Warren Buffett is casting aside Apple for his new favorite fruit: the humble Treasury bill. At 93, the Oracle of Omaha is taking chips off the table, unwinding generational bets on companies in favor of safer plays that protect his legacy. Berkshire Hathaway’s ($BRK.A) Q2 reduced its stakes in several major holdings, including Apple and Bank of America.
- The conglomerate sold a staggering ~$76B worth of stocks in Q2 2024 — including 55.8% of its Apple holdings and 8.8% of its Bank of America holdings.
- Buffett has invested most of his cash position into high-yielding T-bills, with Berkshire now holding ~$277B, more than the US Federal Reserve’s $195B.
The final lesson: Buffett has a trick up his sleeve — building a nest egg for his successors. By loading up on T-bills, he’s positioning Berkshire to benefit from potential rate cuts, which would increase the value of these government securities. This strategy de-risks the portfolio and provides a substantial cash cushion for his successor. In all his wisdom, this move could be one of Buffett’s last and most valuable lessons — how to exit gracefully while preparing for a smooth transition.
