Warren Buffett Sells $4.5B in AI Stocks, Invests in 174-Year-Old Firm
Warren Buffett has made headlines with his recent financial maneuvers, marking a significant shift in his investment strategy. The business magnate has sold $4.5 billion in stocks, notably trimming Berkshire Hathaway’s positions in Apple and Amazon. In contrast, he has initiated a new investment in the storied New York Times, a company established in 1851.
Buffett’s Stock Sales and Their Implications
Over the last 13 quarters of his tenure as CEO of Berkshire Hathaway, Buffett has consistently sold more stocks than he acquired. This selling spree has resulted in a massive cash reserve of $373 billion by the end of 2025.
Apple and Amazon Transactions
Buffett’s actions included significant reductions in his holdings in two of his largest investments: Apple and Amazon. Between 2016 and 2018, Buffett invested over $30 billion in Apple, which at one time constituted more than 50% of Berkshire’s marketable equity portfolio. Despite trimming the stake, Apple remains the largest position, now representing approximately 19% of the total portfolio.
- Apple’s Current Status: The stock’s value has soared, with a price-to-earnings (P/E) ratio rising from 10 to 34 within two years.
- Amazon’s Position: Berkshire’s Amazon stake, initially bought in 2019, is being reduced. Amazon’s P/E has fallen significantly from 80 to 32 recently.
These reductions suggest that Buffett perceives segments of the market as overvalued, prompting a cautious approach toward his investment strategy.
Investment in The New York Times
In an unexpected turn, Buffett has invested in The New York Times, a publication that has navigated adverse conditions in the media landscape better than its competitors. This investment aligns with Buffett’s earlier assertion that Berkshire prefers established companies.
Financial Health of The New York Times
Undergoing a successful digital transformation, The New York Times increased its revenue by 9% in 2025. Its net income surged by 18%, reaching $344 million. The paper has cultivated a strong subscriber base, with 12.8 million digital subscribers paying an average of $9.72 per month.
- Subscriber Growth: Increased by 1.4 million over the year.
- Future Expectations: Digital-only subscribers are projected to grow by 14% to 17% year-over-year.
Despite the challenges faced by traditional media, The New York Times has adapted effectively, showcasing resilience and offering a promising avenue for investors.
Conclusion
Warren Buffett’s latest moves highlight a strategic pivot as he looks to balance risk in an overvalued market while focusing on established companies with strong growth potential. His recent investment in The New York Times signals confidence in the company’s future, contrasting sharply with the divestitures in Apple and Amazon. Investors may find valuable insights in Buffett’s evolving perspective on market dynamics.
