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Berkshire Hathaway Reduces Apple Holdings
Berkshire Hathaway, led by Warren Buffett, has been reducing its investment in Apple (NASDAQ: AAPL), having sold 42 million shares in Q3 2023. Apple remains Berkshire’s largest holding, worth nearly $416 billion in total revenue last year, with iPhone sales generating $210 billion. However, over the last three years, Apple’s revenue grew only 7.4%, significantly less than competitors like Alphabet (37%) and Microsoft (44%), raising concerns about its market position.
Apple’s current price-to-earnings (P/E) ratio stands at 37, higher than Alphabet’s 27, despite slower growth in earnings. Amid stagnant innovation and increased competition in artificial intelligence, Buffett’s strategy to trim Apple suggests a shift in focus toward more promising investments. Moreover, Berkshire recently acquired Alphabet shares, indicating investor sentiment may be turning away from Apple due to its perceived overvaluation.
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