After Buffett slashes AAPL stake, Apple investors urged to remain calm
To some investors, Berkshire Hathaway’s halving of its massive Apple stake could be interpreted as a lack of conviction in the company’s growth story. But many Wall Street analysts say investors should stay calm.
Carmen Reinicke for Bloomberg News:
The Warren Buffett-led conglomerate revealed Saturday that it sold almost half of its position in the tech giant during the second quarter. Its stake now stands at roughly $84 billion, down from about $140 billion at the end of March.
“Buffett’s reduction of his Apple stake is merely about risk management,” said Joe Gilbert, senior portfolio manager at Integrity Asset Management. “If there were any concerns about the longer-term viability of Apple, Buffett would have exited the entire position. Similar to Berkshire’s other stock position reductions, Buffett has meaningful unrealized gains.”
Even after the unwind, Apple remains Berkshire’s largest single position.
“If you’ve got this outsized position you take some profits and you reduce some of your concentration risk,” said Cathy Seifert, a research analyst at CFRA. “They still have a fairly concentrated portfolio,” she added.
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
MacDailyNews Take: As Warren Buffett himself said so well:
Be fearful when others are greedy and greedy when others are fearful.
Imagine you can move the markets like Warren Buffet. You sell when the stock price rises. The news of your sale drives prices lower. Then you pick up more shares. Lather, rinse, and repeat.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
The post After Buffett slashes AAPL stake, Apple investors urged to remain calm appeared first on MacDailyNews.
