Warren Buffett explains Why He Sold Apple Stock | Berkshire Hathaway 2024

In this insightful discussion, Warren Buffett addresses the recent sale of 115 million Apple shares by Berkshire Hathaway, explaining the rationale behind the move and reaffirming Apple’s position as a core holding. Buffett delves into Berkshire's investment philosophy, emphasizing the importance of viewing stocks like Apple, Coca-Cola, and American Express as long-term business investments. He also touches on the inevitability of higher taxes due to current fiscal policies and Berkshire's willingness to pay its fair share. Don't miss this in-depth look at Buffett's timeless wisdom on investing and fiscal responsibility.

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This speech is given by Warren Buffett at Berkshire Hathaway Annual General Meeting on May 4, 2024.

☆Who is Warren Buffett (The Oracle of Omaha)?☆
Warren E. Buffett is one of the most successful investors in the world and the chairman & CEO of Berkshire Hathaway, who has a net worth of over 100 billion dollars. Warren Buffett's Berkshire Hathaway has posted average annual returns of 17.1% since 1985, well ahead of the broader stock market’s 10.5% including dividends. If you’d invested $10,000 in Berkshire Hathaway at the start of 1985 you’d now have $2.4 million; the same principal in the S&P 500 would now be worth about $227,000.

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Warren Buffett explains Why He Sold Apple Stock | Berkshire Hathaway 2024

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[KennedyVerbruggen]

I watched the full video of Berkshire Hathaway's annual meeting. I was impressed by how his position has remained fluid ever since he's been investing, and yet he still remains in the game. I've been following Buffett since 2019, and I've learnt so much from his personal investment style to earn myself $20K monthly in dividend income

[davidtodd]

The man's a genius. Let me sum up what he just said. Berkshire sold Apple now so they will pay only 21% in taxes. With the political uncertainty ahead in an election year and current economic uncertainty that rate could go to 35% or more in the near future. He is looking to free up cash and not gamble losing tens or hundreds of millions of dollars if the next administration raises the tax rate. It has nothing to do with Apple as a company, it's all about freeing up money for future investments when the time is right.

[rtrvatan]

He purchased Apple in 2016/2017, at a average price around $35 per share. The stock price at this moment is around $225. He made an excellent Invesment, and he cashed a part of this profit. Apple is still 30 percent of his portfolio.

[jerrycampbell-utyf]

Can NVIDIA be the next APPL in terms of growth for the next decade? I’ve had majority of my holdings in tech stocks and I've done pretty well, especially with Apple’s P/E (price to earnings ratio) but so much uncertainty now, thus thinking of alternative investments.

[a]

Guy is still razor sharp. They'll never be another Warren and Charlie.

[RusuSilva]

Every time a household name like Warren makes a big move, it instantly creates uncertainty in the markets. 75% of my $400k portfolio comprises of plummeting stocks which were once revered. Do i liquidate and bear losses or just hold on?

[BlablahKia]

He answered the question at the end, 1. He sold because he wants to pay less taxes now because he thinks whoever wins will raise corporate taxes 2. He literally says all 3 companies are good and he’ll still have them as his top companies 3. Skip the first half unless you want history

[RickWatson-xugw]

Buffet was also selling when the pandemic hit, a great entry point for people of my generation (30s, 40s) and a great period for stocks overall. My question is do you think it's a good time to consider selling some stocks too? I’m considering rebalancing my $2M portfolios and curious for the best strategies to do so.

[Raniyanhunter]

As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direction I should take to help me generate substantial profits like some people are this season.

[AnnaOllsson]

Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

[var]

warren’s like your favourite uncle, a top class economics / business school professor and a street smart stock broker rolled into one. Could listen to him forever.

[DonkeyFrog]

He is basically saying he is anticipating a corporate tax rise. He sold apple stock to pay the current 21% rate rather than wait for the tax rise and later pay a higher rate on the realized gains.

[Kin--]

Warren Buffett once said to treat investing in securities like real estate—you don't constantly check for gains. So, the recent bitcoin price drop doesn't bother me. I keep dollar-cost averaging and adding to my position, and I'm up 200% year-to-date because of this strategy.

[begbrook]

It’s refreshing to hear someone finally say that.

[ojas.]

Sad to see him getting older. Still he is razor sharp with his memory and concepts. Most people at his age lost the will the live. But look at him at this age answering questions in public meetings. He is not not a indol just for the stock market, but for kind of human being he is.

[ian]

My father bought shares back in 2012, and in 2015 back when the share prices were in the $20's. By holding on to it, he's accumulated a nearly 1, 000% gain on it.

[peteaulit]

Funny that so many comments focus on the fact they sold Apple shares to lower the taxe rate but none mention the fact that he plainly states that he’s happy to pay $5billion in taxes and maybe more and that IF more companies would pay their fair share we could avoid all other taxes. And this coming from one of the richest man on the planet. How about that, money people?!

[KristensenJørgensen]

(NYSE:ARR) is a high-yield mortgage REIT paying monthly dividends. The stock has a dividend yield of about 14%, as of August 14. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[sunilmathew]

I agree with everything except when he said we should all be willing to pay higher taxes to reduce the deficit. The problem is the government wont use that extra tax money to reduce the deficit and thats why no one want to pay the extra taxes.