Warren Buffett’s Strategic Retreat: Why He’s Cutting Exposure to a ’Magnificent 7’ Giant
Oracle of Omaha trims sails as tech valuations stretch into the stratosphere. Is this the canary in the coal mine for overhyped megacaps?
The Berkshire Hathaway chairman's latest 13-F shows deliberate downsizing of a marquee tech position. No panic selling—just old-school value discipline meeting AI-era euphoria.
Key question: Does Buffett see something the algo-trading masses missed? Or is this another case of 'grandpa not getting the Zoomer economy'?
One thing's certain: When the guy who built a fortune on 'being greedy when others are fearful' starts taking chips off the table, Wall Street's narrative machine kicks into overdrive.
Bonus jab: Meanwhile, Cathie Wood's ARK just doubled down—because nothing says 'conviction' like buying the dip... all the way to zero.
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At one point, Berkshire owned well over 900 million Apple shares, making this part of a steady, multi-quarter selling trend. However, Apple still remains Berkshire’s largest holding, valued at about $60.7 billion as of September 30.
Buffett Cuts His Apple Stake Despite Strong Results
Berkshire’s reduction does not point to concern about Apple’s performance. Apple recently posted better-than-expected fiscal fourth-quarter results, supported by solid demand for the new iPhone 17 lineup and continued strength in its high-margin Services business. Overall, the company continues to show steady momentum across both hardware and recurring revenue.
Most analysts believe the sale is tied to portfolio balance rather than concerns about Apple’s outlook. Buffett himself has not commented publicly on why he is reducing his Apple position.
Beyond Apple, Berkshire has made other adjustments. The firm also trimmed its stake in Bank of America (BAC) by about 6% during the quarter, selling roughly 37.2 million shares valued at about 1.9 billion dollars.
Berkshire Adds More Alphabet Shares During Q3
This update came as Berkshire also revealed a new $4.3 billion stake in Alphabet (GOOGL), the parent of Google.
The new Alphabet investment stood out, mainly because Warren Buffett has been cautious with tech stocks in the past. The filing showed that Berkshire now owns 17.85 million Alphabet shares, making it the group’s tenth-largest U.S. stock holding.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 28 Wall Street analysts. That rating is based on 21 Buy, 12 Hold, and two Sell recommendations assigned in the last three months. The average AAPL price target of $290.67 implies 6.70% upside from current levels.
