Apple’s stock fell close to 5% following the news that Warren Buffett’s Berkshire Hathaway had reduced its investment in the company by 50%.

Warren Buffett made headlines over the weekend by significantly reducing his investment in Apple, which led to a sharp decline in the tech giant’s stock on Monday amidst a broader global market downturn. Berkshire Hathaway’s recent earnings report revealed that its Apple holdings were worth $84.2 billion at the end of the second quarter, indicating that Buffett sold off just over 49% of his shares in the company.

On Monday, Apple shares fell by 4.8%, having dropped as much as 10% earlier in the day. This comes as global markets face the threat of a major correction due to fears of an economic slowdown. The 93-year-old investor has been actively selling off assets, unloading more than $75 billion in stocks during the second quarter, which has increased Berkshire’s cash reserves to a record $277 billion. Additionally, Buffett began selling shares of his second-largest holding, Bank of America, in July.

Earlier in the year, Buffett had already sold 13% of his Apple shares, citing tax-saving reasons in anticipation of a potential increase in U.S. tax rates to address the growing fiscal deficit. However, the scale of the second-quarter sale suggests that other factors may have influenced his decision.

Berkshire Hathaway started investing in Apple in 2016, guided by Buffett’s investment managers Ted Weschler and Todd Combs. Over time, Buffett became increasingly enthusiastic about Apple, eventually making it Berkshire’s largest holding and referring to it as the second-most important business after his insurance companies. At one point, Apple’s stock comprised half of Berkshire’s equity portfolio, so the recent sales might also be related to portfolio management strategies.

Despite the recent sell-off, Apple shares had surged by 23% to a record high in the second quarter, driven by optimism about its advancements in artificial intelligence. Apple has not commented on the recent developments.

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