Buffett and Berkshire Hathaway may shift investing strategy due to potential halt in profit-taking mode

From Nasdaq: 2024-12-05 07:30:00

Legendary company Berkshire Hathaway, led by Warren Buffett, may alter investing strategy based on taxes. With Trump as president, corporate tax rate likely to stay at 21%, prompting potential halt in profit-taking mode. Buffett’s decision to sell Apple stock not solely tax-related, likely due to overvaluation. Investors may want to consider selling Apple stock.

Buffett’s value investing strategy shifted as Apple stock became overvalued at 39 times earnings. Despite stagnant revenue and EPS growth since 2023, stock price soared. Berkshire likely selling Apple not just due to taxes but overvaluation. Confirmation expected in Q4 trades. Investors holding Apple stock should consider potential correction.

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Read more at Nasdaq: Here’s Why Warren Buffett and Berkshire Hathaway May Change Their Investing Strategy With Donald Trump as President