From Nasdaq: 2025-02-12 07:22:00

Warren Buffett and Berkshire Hathaway have been steadily selling off their Apple shares. Berkshire’s Apple holding peaked in Q3 2023 at over 900 million shares valued at $150 billion, but is now down to 300 million shares worth nearly $70 billion in Q3 2024. This trend suggests Buffett may have sold $25 billion in Q4. Despite this, Apple remains Buffett’s largest holding at 23% of his portfolio.

Buffett’s decision to sell Apple may stem from the company’s stagnant growth over the past few years. Apple’s stock has seen a significant rise in price-to-earnings ratio, trading at 37 times earnings compared to 10.6 in 2016. This valuation puts Apple in an overvalued position, especially considering its earnings per share haven’t grown substantially since 2022, even when adjusted for inflation. Despite the stock’s 30% rise since 2022, the lack of meaningful growth could be a concern for investors.

Buffett’s move to sell off Apple shares may be a strategic decision based on the company’s current position in the market. As Apple no longer fits the value or growth criteria Buffett typically looks for, it may be considered overvalued. While Buffett’s selling activity will be confirmed in the upcoming 13F filings on Feb. 14, it wouldn’t be surprising if he further reduces his Apple holdings. Investors may want to take note of Buffett’s actions and consider following suit.



Read more at Nasdaq: Prediction: Warren Buffett and Berkshire Hathaway Sold $25 Billion in Apple Stock in Q4