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

When a company as large as Berkshire Hathaway – which has a substantial cash pile of around A$493.22 billion – decides to cut its stake in one of the world’s most valuable companies, it certainly catches the attention of investors.

Berkshire Hathaway has been actively selling its shares in Apple throughout 2023. In the third quarter alone, the company reduced its shareholding in the iPhone manufacturer by approximately 25%. This followed a nearly 50% reduction in the second quarter. As a result, Berkshire's holdings in Apple are now valued at about A$106.02 billion, down from A$263.9 billion at the end of the previous year.

Warren Buffett hinted during Berkshire’s annual meeting in May that some of the Apple sales in the first quarter were influenced by tax considerations. However, he noted that Apple would remain Berkshire's largest investment, according to reports.

Recently, as Apple disclosed its latest quarterly results, its stock price fell by 2%. Analysts are expressing concerns regarding the company’s sales forecast for the upcoming holiday season. This decline is coupled with a significant A$21.55 billion tax bill in Europe and a slowdown in sales coming from China.

Despite these challenges, Apple continues to grow through acquisitions. Recently, the company announced its plan to purchase the software maker Pixelmator, well-known for its premium photo-editing app.

In a blog post, Pixelmator expressed enthusiasm about the acquisition, stating, “We’ve been inspired by Apple since day one. Now, we’ll have the ability to reach an even wider audience.” The Pixelmator Pro app includes sophisticated editing tools that are comparable to those offered by Adobe’s Photoshop and Illustrator, featuring layers and vector capabilities.

The terms of the deal have not been publicly disclosed. In Australia, the Pixelmator Pro app is available for A$79.99.

Additionally, Apple has introduced various enhancements including Apple Intelligence, which is set to roll out among devices globally, with Australia expected to receive it in December. This acquisition could suggest Apple’s interest in integrating Pixelmator’s functionalities into its array of new artificial intelligence features.

Buffett, Berkshire, Apple