Buffett’s Apple Stock Holding Slashed By 60% This Year

When a large company like Berkshire Hathaway decides to cut its investment in an immensely valuable firm like Apple by around 60% in just a few months, investors sit up and take notice. Berkshire Hathaway is known for its significant cash reserves, which are estimated to be around A$493.22 billion.

In the third quarter, Berkshire continued its trend of selling shares in Apple, reducing its stake by approximately 25% during this period. This follows a substantial cut of almost 50% in the second quarter.

As it stands now, Berkshire’s holdings in Apple are valued at about A$106.02 billion, a significant decline from A$263.9 billion recorded at the end of the previous year.

Warren Buffett, the CEO of Berkshire, indicated during the company’s annual meeting in May that the share sales earlier in the year were influenced by tax considerations. However, he expressed that Apple would still remain Berkshire's largest investment.

In the same week that Apple released its latest quarterly results, the company's stock price fell by 2%. Analysts cited concerns over Apple’s holiday sales forecast as a reason for the decline. Additionally, Apple faces a substantial tax bill of A$21.55 and is also experiencing a slowdown in sales within China.

Despite these challenges, Apple is still actively pursuing expansion through acquisitions. Recently, the company announced an agreement to acquire Pixelmator, a software firm known for its high-end photo-editing applications.

The Pixelmator team expressed their enthusiasm in a blog post, stating, "We’ve been inspired by Apple since day one. Now, we’ll have the ability to reach an even wider audience." This acquisition could potentially enhance Apple’s offerings, particularly as the Pixelmator Pro app features advanced editing tools akin to those provided by Adobe Photoshop and Canva.

The details surrounding the acquisition have not yet been disclosed, but in Australia, Pixelmator Pro is priced at A$79.99.

With Apple Intelligence, a new feature, being launched across various international devices, it is anticipated that Apple may find a way to incorporate Pixelmator’s capabilities into its fresh lineup of artificial intelligence services.

Berkshire, Apple, Investment