Berkshire Hathaway's cash reserves soared to a record $276.9 billion last quarter as Warren Buffett's company sold significant shares in major companies, including Apple.

This represents a substantial increase from the previous record of $189 billion in the first quarter of 2024. The surge occurred as Buffett sold nearly half of his stake in the tech giant that makes iPhones, signaling his view that the tech stock rally—driven by excitement around artificial intelligence—is nearing its end.

There are growing warnings from experts about a potential "bubble," reminiscent of the dot-com bubble of 1999-2000. Some believe a mini-crash is imminent, while others see a correction as inevitable, particularly with the U.S. economy possibly heading toward a recession.

After a long period of often unwarranted optimism, market sentiment has shifted, with investors concerned that the Federal Reserve's delayed rate cuts might now be costly.

Berkshire Hathaway has not been among the optimists. The company has been a net seller of stocks for seven consecutive quarters. In the most recent quarter alone, Berkshire sold shares worth $75 billion, bringing the total for the first half of the year to $90 billion.

Buffett’s firm did not only reduce its stake in Apple but also in Bank of America. Buffett, who turns 94 at the end of the month, admitted at Berkshire Hathaway's annual meeting in May that while he would like to use some of the available cash, high prices are discouraging.

In the second quarter, Berkshire's operating income climbed to $11.6 billion, up 15% from $10 billion a year earlier. During this period, the company repurchased $345 million worth of its own shares, following $2 billion in buybacks in the previous two quarters.