Warren Buffett Continues Trimming Apple Position Despite Record Revenue

TLDR

• Warren Buffett’s Berkshire Hathaway holds 23% of its $257 billion portfolio in Apple and Amazon, though Apple has been trimmed from 40% to about 22% of holdings
• Berkshire sold roughly two-thirds of its Apple position since 2023, with evidence suggesting continued sales in Q3 2025 based on $8.2 billion in after-tax realized gains
• Apple reported record fiscal 2025 revenue of $416 billion and a record September quarter with revenue rising 8% to over $102 billion
• Amazon’s AWS cloud computing unit reached a $132 billion annualized revenue run rate and drives the company’s overall profit
• Buffett is stepping down as Berkshire Hathaway CEO at year-end after nearly 60 years, with Greg Abel set to take over

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Warren Buffett is preparing to step down as CEO of Berkshire Hathaway at the end of 2025 after nearly 60 years at the helm. His successor, Greg Abel, will inherit a $257 billion portfolio where tech stocks Apple and Amazon together make up 23% of total holdings.

Berkshire initiated its Apple position in 2016 after Buffett noticed how attached one of his friends was to the iPhone. The investment grew to become 40% of the portfolio at its peak. However, the company began reducing its stake in 2023.

Apple Inc., AAPL

Since then, Berkshire has sold roughly two-thirds of its Apple holdings. Despite these sales, Apple still represents approximately 22% of the portfolio. This makes it the largest single position in Berkshire’s investments.

Evidence from Berkshire’s Q3 2025 earnings report suggests the selling continued. The company reported $8.2 billion in after-tax realized gains on investment sales during the quarter. This kind of gain on about $12 billion of equity sales would be consistent with Apple stock sales.

Berkshire’s cost basis on consumer stocks fell from $13.4 billion in Q2 to $12.2 billion in Q3. This further supports the theory of continued Apple sales. The company will file its official 13F form detailing portfolio changes by November 14.

Apple’s Strong Performance

Apple recently reported record results for fiscal 2025. Total revenue reached $416 billion for the year. The company also announced a record September quarter with revenue rising 8% to over $102 billion.

The installed base of active Apple devices hit an all-time high. This metric is important for future growth because device users often sign up for Apple services. These services range from digital entertainment to cloud storage and create recurring revenue.

Apple’s services revenue has reached record levels quarter after quarter. This demonstrates how a single device sale can lead to ongoing revenue opportunities. The company’s brand strength gives it a competitive advantage that Buffett values.

Amazon’s Cloud Computing Growth

Amazon makes up just 0.8% of Buffett’s portfolio. One of his investment managers purchased the stock in 2019. In 2018, Buffett had expressed regret about not buying Amazon earlier.

Amazon Web Services (AWS) has become a key profit driver for the company. AWS reached a $132 billion annualized revenue run rate. The cloud computing unit has established itself as a leader in the artificial intelligence market.

Amazon’s fulfillment network and Prime subscription program create a strong competitive advantage. The company has improved its cost structure in recent years. This improvement supports higher profitability going forward.

Market Concerns Drive Sales

Berkshire’s actions suggest concerns about current market valuations. The company has purchased very few stocks in 2025. It hasn’t repurchased any of its own shares this year.

Berkshire continues to accumulate record amounts of cash and short-term U.S. Treasury bills. This cash buildup indicates a cautious stance on market conditions. Apple and other large tech stocks have become expensive in recent years.

Some investors worry that Apple lacks a strong strategy for the artificial intelligence boom. The company is also dealing with tariff-related challenges. These factors may contribute to Berkshire’s decision to reduce its position.

Buffett previously said that when Berkshire sells something, it often exits the entire stake rather than trimming gradually. However, the large size of the Apple position makes it difficult to exit quickly. The company’s overall size limits how fast it can move in and out of major positions.

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