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The Not-So-Suprising Reasons Warren Buffett Is Selling So Much Apple Stock This Year

Discover the real reasons behind Buffett’s surprising Apple stock moves.

By Cameron Diiorio

Edited by Laura Ratliff

Updated Nov. 9, 2024

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Prolific investor Warren Buffett has serious power in the stock market: If he starts investing or selling a particular stock, others will follow suit. Being a famous name in the investing world, he has the clout to elevate stock trends.

Lately, Buffett, a major holder of Apple stock, has started offloading his shares — so if the Oracle of Omaha is selling his stake in the tech giant, should you follow suit? Here’s what to know.

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How much Apple stock is Warren Buffett selling?

In the summer’s quarterly report, Buffett’s holding company, Berkshire Hathaway, sold a decent chunk of its Apple stock.

“Berkshire said it sold about 100 million, or 25%, of its Apple shares over the summer, ending with about 300 million,” Reuters reported. Throughout the past year, Buffett has sold around 600 million shares of Apple.

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Why is Warren Buffett selling Apple stock?

So the question is, why are Buffett and Berkshire Hathaway selling so much Apple stock?

There are several potential reasons why Buffett has decided to sell so much stock — but it still remains around 30% of Berkshire Hathaway’s stock portfolio.

The tax rate is increasing

One of the answers to why Buffett is selling Apple stock seems simple enough: taxes.

Buffett is suspecting an increase in the federal tax rate soon. According to Buffett, the time was right for selling because the 21% federal tax rate has a high chance of growing sooner rather than later.

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Buffett is getting older

Another reason Buffett may be selling his Apple stock is his age. At 94, Buffett is preparing chairman and CEO Greg Abel to take his place when the time comes.

Buffett may be trying to ensure that Berkshire Hathaway is in a good financial place for his successor to take over, and selling Apple stock while still holding onto a large portion of it may be a way to maintain the holding company’s financial health.

Warren Buffett and Apple

Warren Buffett has had a generally positive history with Apple. Although he is offloading Apple stock, Apple remains Berkshire Hathaway’s biggest equity holding since the company first purchased it in 2016.

In the past, Buffett has praised Apple's leadership and highlighted Tim Cook’s strong leadership. He invested in Apple because he liked the company’s values and potential for longevity.

How has Apple set itself apart?

You may wonder how Apple separates itself from other tech giants. The answer may not be in how Apple pushes the boundaries of innovation but rather in how it handles its products and develops its technology.

Apple is known for consistent product launches and its willingness to adapt to and improve upon technology trends.

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New products

Apple has a strong track record of delivering quality products on time. Every year, tech enthusiasts and the average consumer await the next iPhone, iPad, or Apple Watch release.

Apple products are known for their consistency and usability. Apple never tries to be too bold in its product development. This consistency may make it a safe investment choice.

Artificial intelligence

Apple’s approach to the rapid rise of AI has shown promise for investors. Apple has been a bit slower in rolling out AI in its products, and its approach has been to integrate AI technology into its products directly.

The potential for new, AI-powered iPhones shows promise for Apple’s future. As demonstrated by its jump into artificial intelligence, Apple is willing to evolve as technology continues to push boundaries.

Is now a good time to buy?

Many experts believe there is never a bad time to buy Apple stock — that is, if you’re planning to hold onto the stock in the long term.

Since Apple has had a year of ups and downs, it might not be a stock for those looking to grow their wealth quickly. Instead, Apple stock is more appealing to those planning to build a steady portfolio. Based on its history, Apple seems to be here to stay for a long while.

But remember, there’s no guarantee any stock, including Apple, will go up.

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Bottom line

Warren Buffett is not the average investor, so while it’s a good idea to monitor Berkshire Hathaway’s buying and selling practices, it's also a good idea to do your own due diligence.

This means you can also look at stocks like Apple from a larger perspective, and you may stray away from selling immediately if you see that someone like Warren Buffett is doing it.

By researching the stock market on your path to building wealth, you may come to your own conclusions on what stocks like Apple are good to buy and sell.

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