Warren Buffett, the legendary investor, has a significant stake in Apple, but did he sell his Apple stock? The answer is a bit complicated, and it's essential to understand the context.
In 2016, Berkshire Hathaway, Buffett's conglomerate, disclosed that it owned 61 million Apple shares. This was a significant stake, valued at around $13.6 billion.
However, in 2020, Berkshire Hathaway sold about 75% of its Apple shares, reducing its stake to around 15 million shares.
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Warren Buffett's Apple Stock Sale
Warren Buffett's Apple stock sale was a significant move for Berkshire Hathaway, the conglomerate he leads. Berkshire slashed its stake in Apple by nearly 50% in the second quarter, according to its earnings report.
This sharp selloff is notable for Buffett, who is known for holding onto stocks for long periods of time. Berkshire Hathaway disclosed its holdings in Apple were valued at $84.2 billion at the end of the quarter, dropping from 790 million shares to 400 million shares.
A different take: Jeff Bezos Has Sold 14 Million Shares of Amazon Stock
The sale is not a sign that Buffett has given up on Apple, however. As of September of last year, Berkshire Hathaway owned Apple stock valued at $111.7 billion, up from shares valued at $73.7 billion in September of 2019. Buffett's investment in Apple is still valued at around $120 billion, according to Bloomberg.
Berkshire Hathaway sold off $75.5 billion in stock in the second quarter, which is a massive selling spree. The company's cash pile reached a record $276.9 billion during this time.
The sale of Apple stock gives Berkshire Hathaway funds to invest in other equities. Buffett has trimmed investments in some banks, including Wells Fargo, and beefed up investments in health care stocks like Bristol-Myers Squibb and Merck.
This isn't the first time Berkshire has pared back some of its holdings in Apple. In the second half of 2020, the company sold off about $11 billion worth of the stock, a move that Buffett later said was “probably a mistake.”
Buffett and Berkshire Hathaway certainly are not giving up on Apple. The company's stock will continue to be Berkshire Hathaway's biggest equity investment.
On a similar theme: Warren Buffett Penny Stocks
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