To me, this explains why. Stunning info if you are unaware.
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Posted on 08/05/2024 9:50:02 AM PDT by Pol-92064
Since the end of 2023 Berkshire has sold 505 million Apple shares — 115 million in the first quarter and another 390 million in the second quarter. As of June 30, that represents a 55.8% reduction in Berkshire’s Apple holdings since the beginning of the year, Reuters noted.
(Excerpt) Read more at forbes.com ...
I do not know why Buffett sold such a huge chunk of Berkshire’s Apple stock.
Because it was up 900% since he bought it? Billionaires dont go broke taking profits. And he still owns an insane amount. And he has a ton of cash (both in dollars and treasuries) sitting on the sidelines. He will make a killing in the next week or so.
I’ve got a theory...
Is Deep State threatening Apple?
Is it telling Apple do what we want...or else your biz gets it?
Is this the high tech equivalent of a horse’s head in the bed?
Inquiring minds want to know....
ha!
good point
and for that kind of “news reporting” they want us to pay for subscriptions?
/bingo
I think it remains BH’s largest single position even after this.
One could argue that his dumping all those shares put some strain on the overall market. ;^)
“he waits until the fourth paragraph to tell us:”
Most articles these days don’t “answer” their titles until several paragraphs into the article.
I wish more of our posts on this board would not just give the first paragraph or two of the referenced article, but instead give a brief summary.
Buffet claims that it makes better sense to be in a cash position at the moment. But AAPL still makes up a huge chunk of his investments, no knock on AAPL.
Just as long as the correction is 25% or lower, people are not going crazy over a major economic decline. But if he crash results in a 50% decline (aka. DJIA drops to 20,000), all bets are off. ☹️
To me, this explains why. Stunning info if you are unaware.
.
Exactly. He is somewhat of a market timer. Mostly he times his buys very opportunistically. He buys to own great businesses. He bought 10% of Goldman Sachs when the 2008 crash happened. He typically likes to buy to own, buy and hold, or buy and hold if there is a fat dividend he’s good with that too. But yeah when you’re up bigly on something you don’t own outright take some off the top. He may also not see a lot of upside in Apple due to saturation. People may be happy to buy a new phone every 2 years, but that is priced in. And with AI coming it could be a big disruption. Apple may have its own AI team but they tipped their hand when they signed on with OpenAI for Siri on iOS 18. They told everyone they have to outsource AI for now at least, and that’s not good. It means they are way behind and no longer the real darling of tech. Someone else with better AI could theoretically take share from Apple over the mid to long term.
Because when the market crashes good old Uncle Warren is going to swoop in pick at the skeleton for cheap deals and make another $10-20 billion.
This dumping of Apple stock will provide the liquidity necessary to buy stocks at reduced prices during this correction
🤔
Exactly. And note he doesn’t just buy stocks he sometimes buys and integrates entire companies that he thinks will provide consistent returns, profits and growth. He is on record saying he sees nothing of value out there. So he is just hoarding cash and waiting for the right opportunities. Market correction or otherwise. And if there is nothing of value it begs the question what of his holdings does he think are overvalued.
If I look at the indexes I see a triple top. We’re now on the backside. Will it recover to quadruple top? That’s an unusual pattern. They are heading toward correction territory. So selling off this last move has its potential benefits.
He’s also been doing this for about 70 years. He may be planning to leave his successor in a better cash position, setting up the next generation of Berkshire leadership to strike. And also insulate that new management team from various criticisms and pressure. If Warren liquidates it nobody will challenge his wisdom. If the new “kid” (who won’t be a lightweight or a kid) does it the market could turn mean on him or Berkshire.
Not only too much speculation the feds have been pumping trillions into it to make it appear stable.
Wouldn’t be surprised if Buffet gave it a hey watch this test?.
He knows something serious is coming down the pike.
I seriously doubt Buffet is “dumping” Apple. They most likely lined up strategic buyers to offtake the shares. Buffet is not stupid. He still owns a ton of Apple and he is doing everything he can to keep the price high.
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