Warren Buffett sells Apple shares resulting in a loss of over 4 billion
Warren Buffett, known as the Oracle of Omaha, has made many astute transactions over the past eight decades, solidifying his status as an investing powerhouse with a net worth exceeding $120 billion. Among his most successful investments in recent years is Apple (NASDAQ: AAPL), which he first acquired in 2016.
Despite reaping substantial profits from holding AAPL shares, which accounted for approximately 50% of his portfolio, Buffett has been gradually reducing his stake in the tech giant. One of his most notable sell-offs occurred in the first quarter of 2024, when he sold around 16 million shares, representing a 13% reduction in his Apple holdings.
While some speculate that Buffett’s decision to sell was driven by a desire to capitalize on the current tax environment, following President Biden’s proposed tax increase for high-net-worth individuals, the timing may not have been ideal given Apple’s recent stock performance. During Q1 2024, Apple shares traded between $169 and $195, resulting in a potential loss of $1.4 billion to $4.5 billion for Buffett compared to the market value on June 11.
Despite the sizable sell-off, Buffett still retains nearly 790 million AAPL shares, which have increased in value by $18 billion to $163.5 billion. This demonstrates his continued confidence in Apple’s long-term prospects, despite the recent divestment.
