Posted on 05/10/2024 9:29:11 AM PDT by SeekAndFind
I suspect Apple is going under. Maybe not immediately but they’re on the way down and Buffett is bailing out to minimize his risk of loss.
This is actually the second consecutive quarter that Berkshire’s largest position by market value has been pared down by the company’s brightest investment minds. The logic behind this recent selling likely has to do with corporate taxation.
Whereas the roughly 10 million shares of Apple sold during the fourth quarter were to offset select investment losses, the capital gains Buffett’s company recognized from selling 115 million shares of Apple in the first quarter may have to do with front-running fiscal policy changes in Washington, D.C.
At the moment, the peak federal corporate income tax rate is 21%. President Joe Biden has proposed increasing the peak rate to 28%. With higher tax rates likely in the future, Buffett has opined that investors won’t gripe about locking in gains now at a lower corporate tax rate.
Despite selling around 125 million shares of Apple, combined, over the previous two quarters, the Oracle of Omaha has made clear that it’s going to be a longtime holding for Berkshire Hathaway.
Apple is going under just at the DOJ is suing them for having a monopoly on mobile phones.
LOL!!!
It doesn’t matter what Buffet does. I watch what Pelosi and the rest of the corrupt Congress members trade.
Buffet still says Apple is best company in the world and has a great future. He still owns $174 billion of it, or about 40% of Berkshire’s total value. That’s about four times bigger than Berkshire’s second-biggest public stock holding, Bank of America, and makes Berkshire the No. 2 Apple shareholder, behind only Vanguard.
This is a little pruning after a huge run, not a running away. Do you have 40% of your investments in one stock? If you do, you must think highly of it.
With the $billions in his portfolio it is prudent to redirect cash from your largest position when it has grown substantially, and growth is slowing, to allocate to areas of either greater return, or safety.
That was my understanding also, it grew to such a size that it was prudent to prune.
One can watch the whole 6.5+ hour event (starts at about 30 minutes in) https://www.youtube.com/watch?v=X3wLdzddRtI
rather than trust that a ‘journalist’ would pick out the meaningful ‘highlights’ or ‘bombshells’ especially if they can’t even get the names right.
sound like buffet thinks the current market top will soon be a market drop due to the bidenistas’ MASSIVE proposed tax increase ...
“Do you have 40% of your investments in one stock?”
Depends on what’s going on. In 2020 Carnival Cruises was undervalued and I had 50% of my portfolio in it. I bought part at $8.25 and I made another purchase at $7.70.
I sold it all when it hit $25.
My other fortunate move was being an early protester buying GameStop in September 2019 and holding it. It was like $1.25 at the time. I sold most of it at $50 while keeping my original capital invested in it.
Right now the only thing I’m really into is US Gold Corp. and it looks good for now. I bought it mostly because it’s creating jobs in Wyoming.
Apple has attached itself to China and then has doubled down.
That is a very dangerous strategy in today’s world.
“That is a very dangerous strategy in today’s world.”
I agree. If China attacks and invades Taiwan then China and everything in China will be sanctioned and that includes everything Apple produces in China. That alone is why I will not buy any stocks that are exposed to risk from sanctions.
“With the $billions in his portfolio it is prudent to redirect cash from your largest position when it has grown substantially, and growth is slowing, to allocate to areas of either greater return, or safety.”
Yep - they call that “rebalancing”.
It’s an attempt to beat the market (buy and hold).
Its drawback is that you have to beat the market by more than the tax rate - very, very tough to do over the long run - , since you’re paying capital gains taxes on the winners you sold. Might work better in an IRA. Still questionable that it’s better than buy and hold.
So saving on capital gains taxes. I thought ole Warren wanted to pay more taxes.
Apple just announced they are buying back $110 Billion of their own shares
BINGO
When Steve Jobs died the writing was on the wall for Apple. It’s been a dead man walking ever since.
It helps to read the article.
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