Warren Buffett explains why Berkshire reduced its big Apple stake

TL;DR

Berkshire Hathaway sold 115 million shares of Apple in the last quarter, but it remains the largest holding. Warren Buffett emphasizes the importance of viewing stocks as businesses and not predicting markets.

Transcript

let's start just given what you mentioned there was some news that came out in the 10q this morning it shows that Burkshire sold another 115 million shares of Apple in this last quarter that's berkshire's largest holding and I I think in that vein we'll start with a question from Sherman lamb he is a 27-year-old Berkshire Hathaway Class B sharehold... Read More

Key Insights

• 🥹 Berkshire Hathaway sold 115 million shares of Apple, but it remains their largest holding, indicating confidence in the company's long-term prospects.
• 🍉 Warren Buffett believes in treating stocks as businesses and encourages investors to focus on long-term value rather than short-term market trends.
• 🚕 The company pays attention to tax rates, but Buffett emphasizes the importance of contributing to society through tax payments.
• 🛝 Berkshire Hathaway's investment strategy has evolved over the years but remains grounded in the principles laid out by Benjamin Graham.
• 👨‍💼 The company's approach to investing is simple yet effective, relying on a long-term mindset and a focus on businesses' fundamentals.
• ✋ Buffett acknowledges the potential for higher taxes in the future and is willing to pay his fair share to support the country.
• 🍉 Berkshire Hathaway's investment decisions are driven by a desire for capital allocation optimization rather than short-term market gains.

Questions & Answers

Q: How has Berkshire Hathaway's Apple stock position changed in the last quarter?

Berkshire Hathaway sold 115 million shares of Apple in the last quarter, but it remains their largest common stock holding.

Q: Why did Warren Buffett exclude Apple from Berkshire Hathaway's long-duration partial ownership position?

Buffett clarifies that the exclusion does not reflect a change in their views on Apple's business or its attractiveness as an investment.

Q: How does Berkshire Hathaway approach investing in stocks?

Berkshire Hathaway views stocks as businesses and focuses on long-term value. They do not attempt to predict markets or pick stocks based on short-term fluctuations.

Q: What influenced Warren Buffett's investment strategy?

Buffett's investment strategy was heavily influenced by Benjamin Graham's book "The Intelligent Investor," which emphasizes viewing stocks as businesses and not relying on market predictions.

Summary & Key Takeaways

• Berkshire Hathaway sold 115 million shares of Apple in the last quarter, making it the largest common stock holding.

• Warren Buffett clarifies that the sale does not reflect a change in their views on Apple's business or attractiveness as an investment.

• Buffett reiterates the importance of treating stocks as businesses and focusing on long-term value instead of market predictions.