October 26, 2025

Berkshire Hathaway, Warren Buffett’s famed investment company, is feeling the heat this year. Why? Because it’s trailing behind the S&P 500 index by the biggest gap of 2024. The main reason: Buffett’s bold move to sell a huge chunk of Berkshire’s Apple shares. Berkshire’s Class B shares have climbed back 7.2% since hitting a low of $459.11 on August 4. This recovered some ground from a fall of nearly 15% earlier in the year, which followed Buffett’s surprise announcement in May that he plans to step down as CEO by the end of the year. Year to date, Class B shares are up 8.6%, and Class A shares have gained 8.5%. But while Berkshire’s shares gained, the S&P 500 zoomed ahead with a bright 15.5% rise this year, pushing 7.3% higher since August 4, reaching a record high recently. Lower inflation in September gave the market an extra boost, making Berkshire’s lag a wider 6.9 percentage points—the biggest gap it's seen versus the benchmark all year. Why the gap? Buffett’s huge Apple sale is the key. Apple, a giant that makes up 6.35% of the S&P 500, ended Friday at a new record price of $262.82 per share—over 50% higher than when Berkshire started selling in late 2023. Since then, Berkshire sliced down its Apple shares by 69%, from nearly 916 million in September 2023 to 280 million by June 30, 2024. Even with this cut, Apple remains Berkshire’s largest stock holding. If Berkshire had kept all its Apple shares, those would be worth about $241 billion now—compared to $74 billion after the big sale. That’s a massive $167 billion difference! Barron's estimated Berkshire sold shares at an average price of $185 each, making about $96 billion in gains before tax. However, Berkshire left roughly $50 billion "on the table," meaning they could have made more if they held on. After taxes, Berkshire’s gains shrunk by about $20 billion. Buffett hasn’t shared many details about why he sold so much Apple stock, except during Berkshire’s last annual meeting. He said he expected Apple to "remain Berkshire's largest equity position well into the future" and called the company "an even better business than American Express and Coca-Cola." He also mentioned that he believed tax rates on capital gains could rise, so selling some Apple shares now at a lower tax rate might be smart, even if they sold only a small part back then. On another note, Berkshire’s toy and collectibles arm, Jazwares, is buzzing with fresh energy. They just announced two big new partnerships. Jazwares will be the official plush toy maker for the FIFA World Cup 2026, launching adorable products like the official mascot in June. Plus, Jazwares is teaming up with Warner Bros. Discovery to release plush toys from popular movies. The first collection is "spooky," featuring characters from Tim Burton's "Corpse Bride," "Gremlins," and "IT: Welcome to Derry." More exciting collaborations are on the way! So, even if Berkshire struggles a bit on the stock front, its toy company is playing a winning game!

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Tags: Berkshire hathaway, Warren buffett, Apple stocks, S&p 500, Jazwares partnerships, Stock market,