Warren Buffett Trims Berkshire's Apple Stake: Should You?
Portfolio Pulse from Piero Cingari
Warren Buffett's Berkshire Hathaway significantly reduced its Apple stake by 22%, selling about 115 million shares. Despite this, Apple announced a $110 billion share repurchase program, leading to a 6% stock rally. Berkshire's cash reserves are expected to exceed $200 billion, with Apple remaining its largest investment. Apple's stock has shown signs of a market turnaround, surpassing its 200-day moving average and the 50% Fibonacci retracement mark.
May 06, 2024 | 4:03 pm
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NEUTRAL IMPACT
Berkshire Hathaway sold 115 million Apple shares, reducing its stake by 22%. This move increased its cash reserves, expected to exceed $200 billion, positioning it well for potential market downturns.
The sale of Apple shares by Berkshire Hathaway is a significant portfolio adjustment but is part of a broader cautious market approach. The increase in cash reserves positions Berkshire favorably, but the impact on its stock price is neutral in the short term due to the strategic nature of the sale.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Apple announced a $110 billion share repurchase program, leading to a 6% stock rally. The stock has surpassed its 200-day moving average and the 50% Fibonacci retracement mark, indicating a potential market turnaround.
Despite Berkshire Hathaway's significant sell-off, Apple's strategic $110 billion share repurchase program and positive technical indicators suggest a bullish outlook for the stock in the short term. The company's resilience and proactive measures to counter market downturns are likely to support its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100