Warren Buffett's Berkshire Hathaway and the Apple Stock Maneuver: A $23 Billion Gamble
Thursday, 17 October 2024, 08:10
The Impact of Berkshire Hathaway's Apple Stock Cuts
Berkshire Hathaway reduced its Apple holdings by 55% in early 2024, at a time when Apple's stock was near record levels. Business Insider's calculations reveal that this decision cost Warren Buffett's entity around $23 billion in potential earnings. As of now, Berkshire's stake in Apple is valued significantly lower than it could have been.
Analyzing the Stakes
- Berkshire started the year with 905.6 million shares worth approximately $174 billion.
- By selling 505.9 million shares at an average price of $186.15, the missed profit is evident.
- Buffett had built up this position since early 2016, showcasing a long-term vision.
Despite this misstep, it remains a challenge for investors to time market exits perfectly, and Buffett's track record with Apple stock has been commendable overall.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.