Warren Buffett Trimmed His Apple Stake. Here's What He Bought Instead

Warren Buffett’s Berkshire Hathaway recently reduced its Apple holdings by half, freeing up billions in cash. While much of this cash is sitting in U.S. Treasuries, Buffett did make some notable stock purchases in the second quarter. Two of the key buys are Occidental Petroleum and Ulta Beauty.

Occidental Petroleum (OXY):
Buffett now owns 27% of Occidental, betting big on U.S. oil and natural gas. With strong production and a $12 billion acquisition of CrownRock, Buffett is positioning for long-term natural gas demand, despite recent price drops. Occidental currently trades at a P/E ratio of 13.4, making it an attractive buy for long-term investors.

Ulta Beauty (ULTA):
Buffett also added this beauty retailer, which has struggled post-pandemic. Despite a 40% drop in shares and declining sales, Ulta has a solid track record of earnings growth and share buybacks. It’s currently trading at a P/E ratio of 14.4, offering a potential bargain for those who believe in its long-term value.

Buffett’s moves reflect a focus on undervalued companies with long-term potential, even as he trims back on high-flyers like Apple.