IonQ CRO Alameddine Rima sells $4.6m in shares
Warren Buffett’s Berkshire Hathaway B (NYSE:BRKb) has long viewed Apple (NASDAQ:AAPL) as its crown jewel. In early 2024, Apple shares accounted for nearly 25% of the Berkshire Hathaway portfolio. However, Buffett has been selling out of Apple since then, trimming its stake by over 40%.
Based on Buffett’s comments, they are reducing their holdings due to concerns about the stock’s elevated valuation, which trades at a premium to its fair market value. To wit, we share the graphic below. The top graph shows that Apple’s stock price has doubled since 2022, while its revenue has remained relatively flat. Below the graph is a fair market calculator.
The calculator uses the average of three widely used valuation metrics (Benjamin Dodd, Peter Lynch, and a basic DSM model).
Selling out of Apple shares has enabled Berkshire to amass a record $382 billion in cash while reallocating capital to new investments. To wit, Berkshire disclosed a new $4.3 billion position in Google in its Q3 2025 SEC filing, acquiring 17.8 million shares. Google (NASDAQ:GOOGL) is now Berkshire’s 10th-largest holding. This marks Buffett’s boldest foray into pure-play tech since initially embracing Apple.
For the record, Buffett has voiced regrets for missing Google in the past. He once said he “blew it” despite seeing its potential firsthand through Berkshire’s Geico ads.
With Alphabet’s shares up 46% year-to-date on AI and data center momentum, the move underscores a nuanced shift: blending value discipline with selective growth exposure. Bear in mind that Warren Buffett is stepping down as CEO by year-end. Thus, selling out of Apple and into Google might be the workings of Berkshire’s new managers.
Why Rotate?
We often discuss rotating among different stocks, sectors, and factors. The reason is simple: there are always stocks, or types of stocks, that are outperforming the market, and others that are underperforming. With the proper tools, rotating between different stocks can add returns versus common passive investment approaches.
We recently discussed rotation with Adam Taggart on Thoughtful Money. Starting around the 9:00-minute mark, we share the first graph below and others to appreciate the rotation in the current environment.
The graph below shows that the relative performance of staples has been poor compared to the S&P 500. Moreover, its relative performance has been almost the mirror image of the technology sector’s. The second graphic shows that performance has shifted very recently slightly in favor of staples and away from technology.
Note, as shown in the graph on the right side of the second graphic, Technology has moved from the upper right (indicating overbought conditions on both relative and absolute bases) toward the center. Conversely, Staples has gone from oversold on both metrics to the center as well.
Over the last ten trading days, Staples has beaten the S&P 500 by about 2.5%, while Technology has given up 2.5% to the market. For an investor who accurately timed that rotation and shifted from technology to staples, they would have earned an additional 5% versus their prior position.
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