From NASDAQ.: 2024-05-12 07:40:00

1. Berkshire Hathaway’s shareholder meeting revealed a reduction in its Apple stock position to $135.4 billion, attributing to a 13% decrease in shares held. Warren Buffett implied the sale was for tax reasons, potentially in anticipation of future tax rate hikes.

2. Apple is no longer a bargain stock, with a current P/E ratio of around 28, compared to lower valuations during Berkshire’s initial purchase between 2016-2018. The sale boosted Berkshire’s cash reserves to $189 billion, suggesting a strategic move in a potentially overpriced market.

3. Despite the sale, Apple remains Berkshire’s largest position, with plans to maintain that status through 2024. Tim Cook’s presence at the shareholder meeting indicates a strong relationship between Apple and Berkshire. Buffett’s continued confidence in Apple signals its long-term value amid market fluctuations.



Read more at NASDAQ.: 3 Key Takeaways From Buffett’s Sale of Apple Stock