Buffett’s Apple Stock Holding Slashed By 60% This Year

Berkshire Hathaway, one of the biggest companies in the world, has made headlines recently due to a significant reduction in its investment in Apple. With a cash reserve of around A$493.22 billion, Berkshire's decision to cut its holding in Apple by approximately 60% in just a few months has caught the attention of its shareholders.

In the third quarter, Berkshire Hathaway continued to sell its Apple shares. During this period, it reduced these holdings by about 25%, following a nearly 50% cut in the second quarter. Now, Berkshire's investment in Apple is estimated at around A$106.02 billion, a stark decrease from A$263.9 billion at the end of the previous year.

Warren Buffett, the CEO of Berkshire Hathaway, suggested at the company’s annual meeting in May that some of the sales in the first quarter were influenced by tax considerations. However, he reassured shareholders that Apple would still be the largest investment for Berkshire, according to reports.

Last week, Apple announced its latest quarterly financial results, which contributed to a 2% drop in its stock price. Analysts expressed concerns regarding Apple's sales forecast for the holiday season, which, combined with a significant A$21.55 bill from Europe and declining sales in China, influenced the company's situation.

Despite these challenges, Apple continues to pursue growth through acquisitions. Recently, the company decided to acquire Pixelmator, a software maker known for its premium photo-editing app. This acquisition demonstrates Apple’s commitment to expanding its offerings.

In a blog post, Pixelmator shared its excitement about joining Apple, stating, "We’ve been inspired by Apple since day one. Now, we’ll have the ability to reach an even wider audience." The Pixelmator Pro app is recognized for its advanced editing tools that are comparable to those of Adobe's Photoshop and Canva, incorporating features like layers and vectors.

The financial terms of the acquisition have not been disclosed. In Australia, Pixelmator Pro is priced at A$79.99. Moreover, with the recent rollout of Apple Intelligence on various international devices, which is set to launch in Australia in December, there may be potential for Apple to integrate Pixelmator’s editing functions into its expanding suite of AI features.

Berkshire, Apple, stocks