Apple (NASDAQ: AAPL) stock saw a marginal decline in intraday trading Monday following news that Warren Buffett’s Berkshire Hathaway (BRK.B) notably trimmed its holdings of the iPhone manufacturer during the first quarter.
Berkshire Hathaway (BRK.B), led by Warren Buffett, has significantly cut its stake in Apple, the iPhone maker, according to the conglomerate’s latest earnings report released on Saturday.
Berkshire’s largest holding, Apple, was valued at $135.4 billion as of March 31. The company sold approximately 116 million shares, which is 13% of its holding during the quarter, leaving Berkshire with a remaining balance of around 790 million shares in the tech giant.
The reduction in Apple’s stake by Berkshire marks the second consecutive quarter of such action. Filings reveal that the conglomerate offloaded around 10 million Apple shares in the fourth quarter. However, these sales represented just 1% of its enormous stake in the Magnificent Seven member’s stock.
Buffett Says Apple Likely to Remain Largest Holding
The quarterly sales have significantly impacted Berkshire’s Apple holdings. However, Warren Buffett reassured investors at the shareholder meeting on Saturday about his unchanged stance on Apple’s business. He forecasted that Apple would continue to be Berkshire’s largest stock holding by the end of 2024.
The Oracle of Omaha, in a recent interaction with shareholders, expressed his belief that Apple surpasses American Express (AXP) and Coca-Cola (KO), two significant holdings of Berkshire, in terms of business quality.
The comments from Buffett have served to ease investor worries. There was a growing concern that Berkshire was decreasing its Apple exposure due to valuation worries, especially after Apple’s impressive 48% gain in 2023 and forward earnings multiple of 28 times.
The stock, however, could experience temporary price swings as investors digest the latest sales of Berkshire’s stock in Apple.
Apple (NASDAQ: AAPL) Stock Movement
AAPL stock dropped 0.91% to close at $181.71 on Monday. It is up 4.73% this week. Trading activity has witnessed 76,423,403 (76.42 million) shares changing hands, well above the average daily volume of 63.20 million.
