Warren Buffett’s Berkshire Hathaway made headlines recently when it cut its Apple holding by roughly half, reducing it to $84.2 billion. While Apple still remains the firm’s largest stock holding, this move is significant considering Buffett had already reduced his stake by 13 percent earlier this year. This hints that the legendary investor may be selling “a little Apple” for tax reasons, as he previously stated.
The sale of Apple stock reportedly resulted in substantial profits for Berkshire Hathaway. The Financial Times calculated that Buffett had largely avoided tech investments until he started buying Apple stock in 2016. This could be interpreted as a sign that Buffett has lost some faith in Apple, or it could simply be a reflection of his current selling mood. It’s worth noting that he has also been selling off other stocks, including $3.8 billion of shares in Bank of America.
This news comes on the heels of Apple’s third quarter earnings announcement, which revealed a decline in global iPhone sales for the second consecutive quarter. While this decline can be attributed, in part, to competition in China from companies like Huawei, there was a bright spot in the form of iPad growth. CEO Tim Cook addressed the company’s strategy, mentioning that resources have been redirected towards the development of Apple Intelligence, a suite of AI features set to be released in the fall.
Overall, this development in Berkshire Hathaway’s Apple holding raises some interesting questions about the future of the tech giant. Is Buffett’s reduction in stake a reflection of his skepticism towards Apple’s future prospects? Or is it simply a strategic move to diversify his portfolio? Only time will tell, but one thing is for certain – the tech industry will be watching closely to see what unfolds next for Apple.
