Warren Buffett sells Apple shares, invests in Berkshire Hathaway buybacks, signaling positive outlook for stock.

From Nasdaq: 2024-09-25 04:06:00

Warren Buffett’s Berkshire Hathaway has seen tremendous growth under his leadership, with Class A stock returning 20% annually since 1965. Buffett recently sold 389 million shares of Apple due to potential tax rate increases and invested $345 million in stock buybacks for Berkshire. His prudent capital allocation and savvy acquisitions have created substantial shareholder value.

Despite being a longtime admirer of Apple, Buffett has been selling a significant portion of his stake due to expected corporate tax rate increases. Berkshire’s focus on Apple may be due to its expensive valuation compared to projected earnings growth. Meanwhile, Berkshire Hathaway’s consistent share repurchases suggest undervaluation, with Buffett favoring its stock over other investments.

Berkshire Hathaway’s success lies in its insurance float and prudent investment decisions, with book value per share increasing 194% over 10 years. Operating earnings are expected to grow 17% annually through 2027, making the current valuation reasonable. Patient investors may find value in buying a position in Berkshire, especially considering Buffett’s ongoing buybacks.



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