In SEC filings covering Berkshire Hathaway’s fourth-quarter portfolio changes, Warren Buffett and his team disclosed the sale of roughly 72% of their Apple stake over the past two years. What was once half of Berkshire’s marketable equity portfolio is now just over 20% of its $315 billion in assets. Between late 2022 and year-end 2025, Buffett’s sales of Apple shares contributed to a total cash build of $224 billion. He cited the stock’s forward P/E near 33—higher than many AI-exposed peers—as a sign that valuations have become stretched and redeployed proceeds into short-term Treasury bills and other opportunities.

With approximately $4 billion allocated in Q3 2025, Berkshire’s final major purchase under Buffett’s tenure was Alphabet. The conglomerate recognized a forward P/E near 20 at the time of entry, with Alphabet generating nearly $74 billion in free cash flow over the prior 12 months. Google Search revenue grew 15% in Q3, while Google Cloud revenues climbed 34% on an expanding operating margin. Despite shares rising since the initial buy, the forward multiple of about 28 still reflects a balance of growth and valuation discipline in Buffett’s view.

Following Berkshire’s trimming, institutional ownership of Apple remains high—67.7% of shares are held by hedge funds and other large asset managers. In recent quarters, several prominent analysts have reaffirmed buy ratings on Apple, pointing to stabilizing iPhone sales, growth in the Services segment (now past 1 billion subscriptions), and promising early traction for on-device AI features. At the same time, some strategists caution that gross margins may face pressure from lingering tariff impacts and intensifying competition in generative AI, suggesting that upside catalysts could hinge on further Services monetization and new product introductions in 2026.