Warren Buffett Reaffirms Commitment to Apple Despite Selling Millions of Shares, Cites Tax Strategy at Berkshire’s Annual Meeting

Warren Buffett has reiterated his strong belief in Apple, despite Berkshire Hathaway’s recent sale of approximately 13% of its Apple stock, amounting to around 115 million shares. During Berkshire's annual shareholder meeting in Omaha—often dubbed the "Woodstock for Capitalists"—Buffett underscored that despite the sale, Apple remains the conglomerate's largest investment with an estimated value of $135.4 billion.

The sale, which occurred in the first quarter of 2024, was primarily driven by tax considerations. This strategic decision was made as Apple’s stock value experienced a slight downturn, with the company reporting a decline in iPhone sales and overall revenue for the fifth time in six quarters. Nonetheless, Apple's strategic importance to Berkshire Hathaway’s portfolio remains intact. Buffett praised the company, stating it stands above other significant holdings like American Express and Coca-Cola in terms of business quality.

During the meeting, Apple CEO Tim Cook was present, signifying the strong relationship between the two companies. Buffett’s comments reassured investors of his continued confidence in Apple’s long-term value. He also touched upon broader financial strategies and the upcoming transition of Berkshire’s leadership to Greg Abel, emphasizing the company’s stable future.

Despite the share reduction, Berkshire Hathaway still holds a substantial position in Apple, being the largest shareholder outside of ETF providers. Buffett's reassurance and strategic tax planning highlight his adept financial stewardship as he prepares the company for future challenges and opportunities.