You’re right to question that headline. While Berkshire Hathaway did reduce its stake in Apple at the end of 2023, attributing it solely to Warren Buffett selling shares might oversimplify the situation. As you mentioned, Buffett has previously expressed regret over selling Apple stock in 2020, suggesting that his investment philosophy regarding the tech giant may be more nuanced.
It’s essential to consider various factors that could have influenced Berkshire Hathaway’s decision to trim its Apple holdings, such as portfolio rebalancing, changes in investment strategies, or the need for liquidity. Without more detailed information from Berkshire Hathaway or Buffett himself, it’s challenging to draw definitive conclusions about their motives behind the reduction in Apple shares.
New England Asset Management
That’s an important distinction to make. Berkshire Hathaway’s subsidiary, General Reinsurance (Gen Re), includes New England Asset Management (NEAM), which manages its stock investments. In the past, NEAM’s stock holdings were reported separately in its own quarterly reports. However, since May 2023, these holdings have been included in Berkshire Hathaway’s filings.
It’s crucial to recognize that the stock investments attributed to Berkshire Hathaway in these filings may actually belong to Gen Re, not directly to Berkshire itself. Additionally, the portfolio managed by NEAM under Gen Re’s umbrella is not overseen by Warren Buffett. Therefore, any changes or decisions related to these investments may not necessarily reflect Buffett’s current investment strategy or thinking.
Who sold Apple?
Your analysis seems plausible. It’s important to recognize that Berkshire Hathaway’s subsidiaries, such as General Reinsurance (Gen Re) and New England Asset Management (NEAM), may make independent investment decisions that aren’t directly influenced by Warren Buffett himself.
Given the history of NEAM’s investment moves, including buying shares in Verizon, selling shares in Apple, buying Alphabet shares, and selling Coca-Cola stock, it’s evident that these decisions don’t always align with Berkshire’s overall investment strategy.
Considering this context, it’s reasonable to speculate that the recent sale of Apple stock by Berkshire Hathaway might have originated from Gen Re’s portfolio rather than being a direct decision by Buffett. Therefore, the 10,000,382 shares sold could indeed be part of the shares inherited by Berkshire last year.
Should I buy more?
It sounds like you’re approaching your investment in Apple with a thoughtful strategy. The challenges in China, particularly the decline in revenues, are indeed noteworthy and could impact both sales and manufacturing aspects of Apple’s business. However, the strong growth in the services division, coupled with opportunities in emerging markets like India, could offset some of these risks.
Your consideration of a potential retreat in Apple’s stock price to $160 as an opportunity to add to your investment shows a disciplined approach to investing. By setting price targets and closely monitoring the company’s performance, you’re positioning yourself to take advantage of potential buying opportunities while also managing risk. Keep staying informed and evaluating your investment thesis as new information becomes available.
Buffett’s largest stock investment
It seems like you have a well-diversified portfolio with both Apple and Berkshire Hathaway stocks. Both companies have strong track records and promising futures, making them solid long-term investments. By keeping an eye out for buying opportunities in either stock, you’re poised to capitalize on potential market fluctuations while maintaining a long-term investment perspective. Remember to continue monitoring the performance and prospects of both companies to ensure they align with your investment goals.