Buffett surprised investors with the sell-off in Apple shares and, at the same time, the praise of the iPhone giant.
Warren Buffett praises Apple, but sells his shares: what is the strategy of the most followed billionaire in the world towards Big tech?
On Saturday, May 4th, at the annual meeting of Berkshire Hathaway Inc. in Omaha, the investor expressed words of appreciation for Apple, while revealing the cut in his stake in the company.
Berkshire reported a $135.4 billion stake in the iPhone maker at the end of the first quarter, down from $174.3 billion at the end of the year. The move quickly became one of the hottest topics at the meeting, even though Berkshire had sold some Apple shares during the previous quarter.
Buffett and the truth about Apple
Surprisingly, Berkshire reported that it sold about 13% of its Apple shares. The sale was the main reason Berkshire’s cash soared.
Buffett, specifically, said cash could grow to $200 billion this quarter, reflecting risks he sees stemming from high stock market valuations and geopolitical conflicts.
Despite the reduced stake in Apple, the Oracle of Omaha praised the company, saying it is an “even better business” than two of Berkshire’s oldest and largest investments, American Express and Coca-Cola.
The iPhone was “one of the greatest products, and maybe the greatest product, of all time,” Buffett said with Apple CEO Tim Cook in the audience.
Berkshire invested in Apple in 2016, and Buffett has come to view it as a consumer goods company with strong pricing power and devoted customers.
While some investors expressed concern that Apple represented too much of Berkshire’s stock portfolio, Buffett said the giant would remain his company’s largest stock investment, barring any unforeseen events.
Original article published on Money.it Italy 2024-05-06 13:03:09. Original title: Investire in Apple? La risposta nelle mosse di Buffett
