Apple (AAPL) closed at a record $262.82 on Friday (24th), capping a run that has left even Warren Buffett looking like he mistimed a trade. Since Berkshire Hathaway (BRK.A, BRK.B) began trimming its Apple stake in late 2023, the stock has surged more than 50%, costing the Oracle of Omaha roughly $50 billion in potential gains.
That’s right—Buffett, the man who once said his favorite holding period was "forever," sold down his crown jewel and missed out on a monster rally. But before you accuse him of losing his touch, remember: this wasn’t about Apple’s fundamentals. It was about taxes.
From 916 Million Shares to 280 Million
As of June 30, 2025, Berkshire’s Apple holdings had dropped 69%, from about 916 million shares in September 2023 to 280 million shares today. Even after the cuts, Apple remains Berkshire’s single largest position.
If Buffett had held on, Berkshire’s Apple stake would now be worth $241 billion. Instead, it sits at about $74 billion—a paper "loss" of $167 billion compared to the what-if scenario.
According to Barron’s, Berkshire sold at an average price of $185 per share, booking $96 billion in pre-tax profits. The catch? Roughly $20 billion went straight to Uncle Sam in income taxes.
Buffett's Reason: Beat the Taxman
At last year’s shareholder meeting, Buffett explained his thinking. With the U.S. fiscal deficit ballooning, he sees a high probability that capital gains tax rates will rise. During his career, he’s seen them as high as 52%; until recently, they were 35%.
By selling some Apple stock at today’s 21% rate, Buffett argued, Berkshire shareholders are better off than if they faced higher taxes down the road. "We don’t mind paying federal income taxes," Buffett said, "but shareholders might appreciate locking in gains at a lower rate."
In other words, Buffett wasn’t souring on Apple—he was playing defense against Washington.
Still Apple's Biggest Fan
Despite the sales, Buffett has been clear: Apple is still Berkshire’s long-term anchor, even more important than old favorites like American Express (AXP) and Coca-Cola (KO). He’s repeatedly praised Apple’s brand loyalty, sticky ecosystem, and cash flow machine.
So while the headlines scream "Buffett loses $50 billion," the reality is more nuanced. He banked nearly $100 billion in gains, paid his taxes, and still holds a massive Apple position.
The Bottom Line
Buffett's Apple trim is a reminder that even legends have to weigh tax strategy against market upside. Sure, Berkshire left billions on the table, but Buffett’s move wasn’t about timing the market—it was about protecting shareholders from a future tax squeeze.
And if history is any guide, Buffett’s patience with Apple will still pay off. After all, missing out on $50 billion in "what-ifs" doesn’t sting quite as much when you’re still sitting on $74 billion worth of iPhones, Macs, and AirPods.