TLDR
- Warren Buffett sold 74% of Berkshire Hathaway’s Apple stake over two years, cutting 677 million shares since September 2023
- Berkshire purchased over 17.8 million shares of Alphabet (Google) worth more than $4.3 billion in Q3 2025
- Apple’s sales growth has stagnated despite high valuation, trading at a P/E ratio of 37
- Alphabet maintains 89-93% of global internet search market share and has grown 11,000% since its IPO
- Apple captured 25% of China’s smartphone market in October 2025, with iPhone 17 sales up 37% year-over-year
Meta Description: Warren Buffett sold 74% of Berkshire’s Apple stake while buying $4.3B in Alphabet shares. China iPhone sales surge 37% as market shifts continue.
Warren Buffett has drastically reduced Berkshire Hathaway’s position in Apple over the past two years. The billionaire investor sold shares in six of the last eight quarters, cutting the stake by 74%.
Berkshire disposed of 41.7 million Apple shares during the third quarter of 2025. This brought the total reduction to 677 million shares since September 2023.
Buffett cited expectations of higher corporate tax rates as one reason for the selling. He wanted to lock in gains at current tax levels. However, analysts suggest additional factors may be at play.
Apple’s growth has slowed despite maintaining a loyal customer base. Physical device sales, including the iPhone, have remained flat for nearly four years. Only the company’s subscription services show consistent expansion.
The tech giant now trades at a price-to-earnings ratio of nearly 37. This represents a 22% premium to its five-year average valuation.
Buffett Builds Major Alphabet Position
During the same period, Buffett made a large bet on Alphabet. Berkshire purchased 17.8 million Class A shares worth over $4.3 billion in the third quarter.
This represents one of Buffett’s largest recent purchases. The Alphabet stake now accounts for 1.6% of Berkshire’s invested assets.
Google controls between 89% and 93% of global internet search since 2015. This dominance has persisted despite the emergence of artificial intelligence chatbots and large language models.
Alphabet reported strong cloud computing growth in the September quarter. Google Cloud revenue jumped 25% from the previous year. The segment now generates over $60 billion in annual revenue.
The company holds $98.5 billion in cash and marketable securities. Alphabet generated $112.3 billion in operating cash flow through the first nine months of 2025.
Apple Sees Strong China Sales
Apple captured 25% of China’s smartphone market in October 2025. The company’s unit sales in the country rose 37% year-over-year, driven by the iPhone 17 lineup.
Counterpoint Research reported all three iPhone 17 models posted double-digit growth. New models represented over 80% of Apple’s unit volume in China.
China’s total smartphone market grew 8% in October. Xiaomi reached the number two position for the first time in over a decade.
Alphabet trades at a price-to-earnings ratio of 27. The company expects annual sales growth of 13% to 14%, according to analyst projections.
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