2024-08-05
Warren Buffett’s Berkshire Hathaway sold 55.8% of Apple stock in the first six
months of 2024
In 2024 Berkshire has sold 505 million Apple shares, 115 million in
the first quarter and another 390 million in the second quarter.
If Buffett sold Apple share at the average price of $180, this sale
would worth $90.90 billion.
As of August 2024, Berkshire’s cash reserves soared to nearly $277
billion.
Warren Buffett reduced Berkshire’s stake in Apple, selling about 390
million shares in the second quarter, following a sale of 115 million shares
earlier in the year.
Despite the sell-off, Berkshire still held about 400 million Apple
shares, valued at $84.2 billion as of June 30.
The increase in cash reserves was partly due to Berkshire selling a
net $75.5 billion of stocks, marking the seventh consecutive quarter of net
stock sales.
Berkshire’s operating profit rose 15% to $11.6 billion, with nearly
half coming from underwriting and investments in its insurance businesses.
Net income fell 15% to $30.34 billion, influenced by rising stock
prices which boosted the value of Berkshire’s investment portfolio.
Why Warren Buffett sold Apple stock?
Apple's
businesses remain strong. Investors are still value Apple at a high
price.
Apple Inc. is a multinational technology company renowned for its
innovative products and services. Here's an overview of the main business areas
Apple engages in:
1. Consumer
Electronics:
o iPhone: Apple's
flagship smartphone, which generates a significant portion of the company's
revenue.
o iPad: A line of
tablets that caters to both consumers and professionals.
o Mac: A range of
personal computers, including the MacBook (laptops), iMac (desktops), Mac mini,
and Mac Pro.
o Apple Watch: A smartwatch
with health, fitness, and connectivity features.
o AirPods and
Beats: Wireless earbuds and headphones.
2. Software and
Services:
o iOS: The operating
system for iPhone and iPod Touch.
o macOS: The operating
system for Mac computers.
o iPadOS: The operating
system specifically designed for iPads.
o watchOS: The operating
system for Apple Watch.
o tvOS: The operating
system for Apple TV.
o App Store: A digital
distribution platform for mobile apps on iOS.
o iCloud: A cloud
storage and cloud computing service.
o Apple Music: A music and
video streaming service.
o Apple TV+: A streaming
service offering original TV shows and movies.
o Apple Arcade: A
subscription service for games.
o Apple News+: A
subscription service for news and magazines.
o Apple Fitness+: A fitness
service offering guided workouts.
3. Wearables,
Home, and Accessories:
o Apple Watch: Beyond being
a wearable device, it has extensive health monitoring capabilities.
o HomePod: A line of
smart speakers with Siri integration.
o AirTag: A tracking
device that helps locate personal items.
o Other
Accessories: Includes items like chargers, cases, and various other
peripherals.
4. Enterprise
Solutions:
o Apple provides
technology solutions for businesses, including hardware, software, and services
that help companies manage their operations efficiently.
5. Research and
Development:
o Apple invests
heavily in R&D to innovate and create new technologies, including
advancements in augmented reality (AR), artificial intelligence (AI), and
potentially developing new product lines like AR glasses or even autonomous
vehicles.
6. Retail and
Online Stores:
o Apple operates
a global network of retail stores, which provide not only sales but also
support and training through the Genius Bar.
o The online
Apple Store offers the full range of Apple products and accessories, along with
customer support.
These diversified business areas allow Apple to maintain its
position as a leading technology company globally, with a strong emphasis on
integrating hardware, software, and services into a cohesive ecosystem.
As of August 3, 2024 Apple has a market cap of $3.342 trillion. This
makes Apple the world's most valuable company by market cap.
Warren Buffett uses value investing strategy. He might see Apple
stock overvalue. So, he sold overvalue Apple stock to invest in other
undervalue stocks.
Secondly, Warren Buffett might find it hard to predict Apple's future in the age of artificial intelligence. So he decided reduce his position in Apple.
