Warren Buffett may sell all of his Apple stock in 2025 due to overvaluation

From Nasdaq: 2024-12-19 07:00:00

Apple has been a successful investment for Berkshire Hathaway, but it may be time to sell in 2025. The stock has risen 850% since Q1 2016, trading at 41 times trailing earnings. With weak revenue growth projections, other tech stocks may be more attractive investments. Buffett’s team has been steadily selling off shares.

Apple’s stock used to be a value play for Buffett, but now it’s considered overvalued. Berkshire has reduced its stake from 916 million shares to 300 million. With a forward P/E ratio of 34 and slow revenue growth, the investment thesis for Apple has played out. Investors should look elsewhere for better opportunities.

While Buffett has praised Apple CEO Tim Cook, the stock’s high valuation may prompt further selling. Wall Street analysts project only 6% revenue growth for Apple this year. Other tech companies offer cheaper price tags and faster growth potential. Investors should consider diversifying their portfolios away from Apple in 2025. 1. The stock market hit record highs today, with the S&P 500 closing at 3,700 points, and the Dow Jones reaching 30,000 points for the first time. Investors are optimistic about a potential COVID-19 vaccine and a smooth transition of power in the White House.

2. In other news, a new study found that wearing a face mask can reduce the transmission of COVID-19 by up to 70%. Researchers emphasized the importance of mask-wearing in preventing the spread of the virus, especially during the upcoming holiday season.

3. A major breakthrough in renewable energy was announced today, as scientists unveiled a new solar panel design that can generate electricity from raindrops. The panels are highly efficient and could revolutionize the way we harness solar energy in the future.

4. On the political front, tensions are rising between the US and China as the Trump administration announced new sanctions on Chinese companies with alleged ties to the military. The move is seen as a continuation of the ongoing trade war between the two countries.



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