Berkshire Hathaway's Investment Moves in Q2: Reducing Apple Stake and Adding Ulta Beauty and Heico

In the second quarter of 2024, Berkshire Hathaway significantly reduced its holdings in Apple

In the second quarter of 2024, Berkshire Hathaway significantly reduced its holdings in Apple while increasing its investments in Ulta Beauty and Heico. The moves reflect a strategic shift, with notable reactions in the stock market.

In the second quarter of 2024, Warren Buffett’s Berkshire Hathaway made significant adjustments to its investment portfolio. Notably, the company reduced its stake in Apple while increasing its investments in other sectors, such as cosmetics and aerospace.

According to reports from Bloomberg and Reuters on August 14, 2024, Berkshire Hathaway disclosed its Q2 holdings through its 13F report. The company purchased approximately 690,000 shares of Ulta Beauty and 1,040,000 shares of Heico. The investments are valued at about $227 million (approximately 308.9 billion KRW) and $247 million (approximately 336.1 billion KRW), respectively.

While it is unclear whether Warren Buffett was directly involved in these decisions, the disclosure led to notable market reactions. Following the announcement, Ulta Beauty’s stock price surged by around 13% in after-hours trading, while Heico’s stock rose by about 3%.

In addition to Ulta Beauty and Heico, Berkshire Hathaway also increased its stakes in Occidental Petroleum and Chubb during the quarter. However, the company focused more on cash accumulation rather than new investments. Berkshire Hathaway sold $77.2 billion worth of stocks while only purchasing $1.6 billion worth. Its cash reserves grew from $189 billion (approximately 257.2 trillion KRW) at the end of March to $277 billion (approximately 376.8 trillion KRW) by the end of June.

During the same period, Berkshire Hathaway significantly reduced its Apple holdings, selling approximately $50 billion worth of shares, leaving it with a remaining stake of $84.2 billion (approximately 114.6 trillion KRW).

The company also divested or reduced its stakes in other companies such as Snowflake, Chevron, Capital One, T-Mobile, and Paramount Global.

In the third quarter, Berkshire Hathaway has been selling its shares in Bank of America. Since mid-July, the company has sold over $3.8 billion worth of Bank of America shares in 12 consecutive trading days.

Meanwhile, Bill Ackman’s Pershing Square Capital, known for its association with the "Baby Buffett" moniker, invested in Nike during the second quarter. Pershing Square holds approximately 3 million shares of Nike, valued at about $229 million (approximately 311.6 billion KRW). Nike's stock, which fell nearly 20% in late June due to poor performance, has since recovered slightly.

Michael Burry’s Scion Asset Management, famous for predicting the 2008 financial crisis, also adjusted its portfolio by reducing its stock holdings by half while purchasing Alibaba shares.

Additionally, Norway’s sovereign wealth fund, NBIM, benefited from the AI boom and strong performance in tech stocks, recording a profit of 1.48 trillion kroner (approximately 188 trillion KRW) in the first half of the year, with a return rate of 8.6%.

Berkshire Hathaway’s latest investment moves illustrate a strategic realignment, with significant changes in its portfolio. The reduction in Apple holdings and increased investments in Ulta Beauty and Heico reflect broader market trends and company strategies. As the market continues to evolve, these moves provide valuable insights into investment strategies and market reactions.