Winning Bizness Desk

Mumbai. In a strategic move, Warren Buffett’s investment firm Berkshire Hathaway Inc. has sold nearly 50% of its stake in Apple, the iPhone maker. This significant divestment has bolstered Buffett's cash reserves to a record $276.9 billion (approximately ₹23.20 lakh crore). Although the exact number of shares sold has not been disclosed, estimates suggest that Berkshire's investment in Apple is now valued at $84.2 billion (around ₹7.05 lakh crore), down from $135.4 billion (around ₹11.34 lakh crore) at the end of the first quarter.

According to the Forbes Real Time Billionaire List, Warren Buffett’s personal net worth stands at ₹11.29 lakh crore. At 93, Buffett continues to be one of the world’s most influential investors. Despite this sale, Apple remains a key part of Berkshire’s portfolio.

Berkshire's Strategic Shift

Beyond Apple, Berkshire Hathaway has also reduced its stakes in several other companies. In the second quarter alone, the firm sold shares worth $75.5 billion (around ₹6.32 lakh crore). This strategic shift increased Berkshire’s operating income from $10 billion (approximately ₹83,767 crore) last year to $11.6 billion (around ₹97,170 crore) this year. The company, headquartered in Omaha, Nebraska, disclosed this information on Saturday.

Economic Context and Market Reactions

Many analysts believe that Berkshire’s record sales may be driven by fears of an impending recession in the United States. The company has been focusing on reducing its stakes in various firms and increasing its cash reserves amidst these economic uncertainties. Recently, the U.S. stock market experienced significant declines, exacerbating concerns.

On August 1, the Dow Jones Industrial Average closed at 40,347, down by 1.21%. The NASDAQ fell by 2.30% to 17,194, and the S&P 500 dropped by 1.37%. Asian markets mirrored this trend, with Japan’s Nikkei plummeting by 5.81%, Hong Kong’s Hang Seng declining by 2.08%, and China’s Shanghai Composite decreasing by 0.92%.

Top 10 Richest Men in the World (August 2024)

1. Elon Musk - Net worth: $232.1 billion. CEO of Tesla and SpaceX.

2. Jeff Bezos - Net worth: $202 billion. Founder and former CEO of Amazon.

3. Bernard Arnault & Family - Net worth: $175 billion. Chairman and CEO of LVMH.

4. Mark Zuckerberg - Net worth: $139 billion. Co-founder and CEO of Meta (formerly Facebook).

5. Larry Ellison - Net worth: $134 billion. Co-founder and chairman of Oracle Corporation.

6. Bill Gates - Net worth: $125 billion. Co-founder of Microsoft and philanthropist.

7. Warren Buffett - Net worth: $118 billion. Chairman and CEO of Berkshire Hathaway.

8. Steve Ballmer - Net worth: $117 billion. Former CEO of Microsoft and owner of the LA Clippers.

9. Larry Page - Net worth: $115 billion. Co-founder of Google.

10.Sergey Brin - Net worth: $113 billion. Co-founder of Google.

These billionaires have significantly shaped global markets and continue to influence economic trends through their investments and business ventures.