3 Beloved Stocks Warren Buffett Is Selling Amid Market Declines

Warren Buffett ended 2024 with a significant amount of cash on hand, reflecting his cautious approach to investing. However, a closer examination of Berkshire Hathaway's portfolio indicates that Buffett is actively reducing his stakes in several well-known stocks.

According to the firm’s 13-F regulatory filings, prominent holdings like Apple and American Express are maintaining stability, but Buffett has also been scaling back on other key investments.

"Warren Buffett's recent selling is strategic. He hasn't lost faith in investing; rather, he's building a cash reserve for better prospects in the future," explained Steven Kibbel, a financial planner and advisor. "His cash position is at record levels, suggesting he's being selective and patient as he waits for the right opportunities."">

Buffett is known for avoiding stocks that are overvalued. As inflation and economic uncertainty continue to loom, he remains cautious. "When the market cap of U.S. stocks exceeds GDP significantly, it sends a warning signal, and we are currently in that territory," Kibbel added.

Throughout 2024, Berkshire Hathaway sold off equity positions worth approximately $143 billion, further bolstering its cash reserves to $334 billion. While Buffett did not elaborate extensively on his cash strategy in his 2024 annual letter to shareholders, he hinted at a future shift.

"Most of your money will still be in equities, but our cash position shouldn’t be overlooked. We’ll always favor investments in solid businesses over cash equivalents," Buffett stated. He also reflected on how far his firm has come in terms of tax contributions compared to decades past.

Buffett's Key Sales

In the latter part of 2024, Buffett has been notably selling off shares in the financial sector, which he has historically favored.

"Buffett's sell-off primarily targets bank stocks," Kibbel observed. "With interest rates affecting lending, the overall performance of banks becomes unpredictable."">

Here's a look at three major stocks that Buffett has been trimming down:

Apple

Buffett's Berkshire reduced its stake in Apple Inc. by about 67% in 2024, with most of the sales occurring during the first three quarters. Despite this, the portfolio still contains approximately $75.1 billion in Apple shares. Since then, Apple’s stock price has decreased by around 14.8% in 2025, making Buffett's decision timely, considering the company’s challenges in the current market.

Market experts suggest that Buffett's decision to sell Apple stems from the need to manage risk more effectively. "When a single stock comprises nearly half of your portfolio, even an experienced investor like Buffett understands the risks of being overly exposed," commented John Beck, a financial advisor.

Bank of America

After its sell-off in 2024, Berkshire now holds less than the 700 million shares initially acquired in Bank of America since 2017. The current economic climate has prompted Buffett to decrease this investment for several reasons.

"Similar to the broader trend with bank stocks, high-interest rates impact lending profitability, and the uncertainty in the economy limits performance predictions," Kibbel noted. Buffett’s gradual approach to reducing his Bank of America stake indicates his cautious mindset.

Citigroup

Buffett's strategy is not only focused on current market conditions but also on longer-term positioning. He has reduced his Citigroup stake by over 70% in a single quarter, highlighting concerns regarding interest rates and regulatory challenges facing the banking industry.

"The rising interest rates have changed the dynamics for financial firms like Citigroup," Beck explained. "Buffett is not just reacting to current circumstances; he’s preparing for the future landscape of the industry."

Conclusion on Buffett's Strategy

As 2025 begins, it’s unclear how Buffett views the market outlook. Nevertheless, his previous actions suggest that he’s preparing for significant movements ahead.

"Buffett's recent Apple sales likely indicate he sees it as fully valued, despite it still being Berkshire’s largest equity holding," explained David I. Kass, a finance professor. His actions in the financial sector are tactical as he builds cash to potentially hand off to Greg Abel as his successor, allowing for transitions without burdensome holdings.

Importantly, Buffett’s selling isn’t a sign of pessimism regarding the health of these companies; rather, it illustrates a strategy aimed at ensuring liquidity and readiness for future market opportunities.

"Buffett is trimming back on Apple to avoid overexposure, especially considering the high-interest-rate environment that often affects tech stocks negatively," noted David Capablanca. Investors should understand that Buffett’s sales look to use his substantial cash reserves to potentially invest when the market creates new opportunities.

Finally, while observing Buffett's moves can provide insights for long-term investors, merely copying his strategy may not yield the same results. It's crucial to comprehend the rationale behind his decisions rather than mechanically mimicking them.

Buffett, Selling, Apple