Warren Buffett, when asked about his decision to trim Berkshire Hathaway’s Apple position, the Oracle of Omaha offered a characteristically candid four-word verdict: “I sold it too soon.”
Jeremy Phillips for 24/7 Wall St.:
Berkshire began accumulating Apple shares around 2016, and the stake eventually grew into the firm’s largest equity holding, valued at over $170 billion at its peak. Then came the sales. Through 2023 and 2024, Berkshire reduced the position by roughly two-thirds, leaving the stake valued at approximately $40 billion at the end of 2024.
Buffett was quick to frame the outcome positively. Berkshire made over $100 billion pretax on the position, and he noted that Apple remains Berkshire’s largest single investment. He also offered a striking endorsement: Apple is better than any business Berkshire owns outright, even noting that Berkshire owns a railroad worth more than its Apple position, yet Apple still tops the holdings list…
Since the start of 2024, AAPL shares have risen 34.23%…
Buffett was clear that he has no ability to predict what stocks will do next week or next month. What he does know is that Apple’s business has continued to compound well beyond the point he chose to reduce exposure. The profits were real. The opportunity cost was, too.
MacDailyNews Take: Duh.
There’s no two ways about it: Leaving over $35 billion on the table in a single year on a single stock is simply legendarily bad investing.
If Buffett’s calling these nonsensical, losing shots, maybe it’s time he wasn’t. If Buffett’s no longer making the calls, that doesn’t bode well for Berkshire Hathaway’s future. – MacDailyNews, December 18, 2024
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