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Berkshire Hathaway Reduces Apple Stake
Berkshire Hathaway, led by Warren Buffett, has sold 41,787,236 shares of Apple Inc. (NASDAQ: AAPL) in the last quarter, marking a significant reduction in its investment. This decision raises concerns about the overall stock market valuation and economic conditions. Currently, one-third of Berkshire’s market capitalization is held in cash, the highest level in its history.
Buffett’s strategic shift comes as Apple, despite being Berkshire’s largest holding, is experiencing slower revenue growth and high valuation metrics compared to its previous purchase periods. The company’s price-to-earnings (P/E) ratio has soared to nearly 40, while revenue growth is forecasted at just 8.8% for 2023 and 6.2% for 2024, down from consistently higher growth rates in previous years.
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