Buffet once more offloads Apple stocks.
Warren Buffett, the legendary investor, has reduced Berkshire Hathaway's stake in Apple shares by 25% in the third quarter of 2025. This move, part of a broader strategy to accumulate cash, reflects caution amid market highs and potentially overvalued stocks.
Despite the reduction, Apple remains Berkshire's largest position, accounting for about 24% of the portfolio. This indicates that Buffett still values the company but is less confident about immediate market conditions or better opportunities.
The total value of Berkshire's stake in Apple is now $69.9 billion, down from $174.3 billion at the end of last year, representing a 60% drop. Buffett's accumulation of a massive cash reserve ($344 billion) alongside selling stocks like Apple signals concern about overvaluation in the current market and possible upcoming downturns.
For investors, this move may warrant caution but not panic. Apple continues to demonstrate strong fundamentals with AI-driven product upgrades, supply chain improvements, and growing services revenue, which offer long-term growth potential. However, its stock has declined about 18% year-to-date in 2025, reflecting short-term market pressures and valuation concerns.
Other analysts view Buffett's sales as a portfolio realignment rather than a sign of concern about Apple's future prospects. In its latest quarterly results, Apple announced a decrease in sales in China and expected low to mid-single-digit revenue growth for December. This revenue growth expectation for December is lower than analyst expectations for the crucial holiday season.
Despite these challenges, the majority of analysts still recommend buying the stock. Jim Shanahan, an analyst at Edward Jones, suggests that Buffett's business partner, Charlie Munger, may have felt more comfortable with Apple than Buffett. Direct and indirect positions in Apple have been taken by the CEO and majority shareholder of the publisher Boerse-Medien AG, Mr. Bernd Förtsch, and the board of the publisher, Mr. Leon Müller.
There is a 10% upside potential for the stock, with an average price target of $246. In summary, while Buffett’s downsizing of Apple shares signals prudent caution amid market uncertainties, the company’s solid fundamentals mean investors should evaluate Apple stock carefully in the context of overall portfolio risk rather than assuming a broad sell-off is imminent.
Investing in technology companies, like Apple, remains a key part of Berkshire Hathaway's business, despite Warren Buffett's decision to reduce the stake in Apple shares. The sale of Apple stocks indicates Buffett's concern about overvaluation in the current market and potential upcoming downturns, but it doesn't necessarily signal a lack of confidence in Apple's long-term growth prospects, given the company's AI-driven product upgrades, supply chain improvements, and growing services revenue.
