Berkshire Hathaway’s Warren Buffett has reduced his stake in Apple. According to the form that the company filed with the Commission on securities and exchange investigat got rid of in the last quarter, shares of the iPhone maker worth more than $ 800 million.
This may seem a significant amount, but Buffett is still the largest shareholder of Apple with a 5.4% stake, valued at $ 72 billion, according to Bloomberg.
holding has reduced its stake in Apple for several reasons. It is likely that Berkshire Hathaway wanted to diversify assets, given that Apple accounts for almost 30% of the portfolio. In addition, the holding company Buffett paid 549 million dollars for a 2.4% share of U.S. supermarket chain Kroger. Berkshire also paid 192 million dollars for a 0.4% stake in Biogen, biopharmaceutical giant that develops and delivers medicines for the treatment of neurological diseases.
news of the support Buffett has led to the fact that the shares of Kroger rose by about 6%, increasing its market capitalization by more than $ 1.3 billion to almost $24 billion. Shares of Biogen rose 2%, increasing its capitalization pharmaceutical companies for $ 1.2 billion.
Perhaps, Buffett wanted to withdraw after the rally in the last quarter, when Apple shares has risen from approximately 219 to 294 dollars. Depending on when Berkshire sold 3.7 million shares, the holding company earned from 806 million dollars to almost $ 1.1 billion.
a common strategy Buffett buying shares is widely known: he buys shares in companies whose business he understands and holds them for an extended period of time. A significant part of their Apple stock, Buffett is unlikely to sell in the near future.
Analysts have long-term positive view on the prospects of growth of Apple shares. So, Katy Huberty of Morgan Stanley previously wrote in a note to investors that demand for the iPhone 5G is really a record, with the result that the market value of Apple will increase dramatically. The trust forecast has been increased to 368 USD per share.
However, while experts note that the impact of the coronavirus to the global technology industry, which hopes for a recovery in 2020, can be serious. Analysts warn that the virus could reduce global supplies of smart phones by 10% this year.