Berkshire Hathaway continues to trim its position in Apple, which has been its largest stockholding for a decade. Apple’s slower growth and lack of innovation in artificial intelligence have raised concerns. Shares of Apple appear expensive compared to rivals like Alphabet, prompting Buffett to sell.

Apple’s revenue growth has been stagnant, with a focus on iPhone and services segments. However, the company is falling behind big tech competitors in revenue growth, especially in AI. Lack of innovation in new hardware and software services could pose risks to Apple’s profit pool.

Apple’s demanding valuation, with a P/E ratio higher than Alphabet and Microsoft, makes investors like Buffett nervous. Berkshire Hathaway is selling Apple while buying Alphabet due to its higher growth and lower P/E ratio. Smart investors may follow suit to capitalize on Alphabet’s innovation.

Investing in Apple may not be the best move currently, as it lags in growth compared to other tech stocks. The Motley Fool’s Stock Advisor team has identified 10 better stocks to invest in for potential higher returns. Following their recommendations could lead to significant gains, as seen with previous picks like Netflix and Nvidia.

Read more at Nasdaq: Warren Buffett Keeps Selling His Apple Stock: Should You?