đWarren Buffett's Berkshire Hathaway sold 55.8% of its Apple holdings in the first half of 2024, with the sale of 505 million shares
â ď¸â ď¸â ď¸Here are some key points related to the sale:
- *Tax Implications*: Buffett mentioned at the Berkshire Hathaway annual meeting that selling Apple shares in the current tax period would help avoid potential problems if the capital gains tax is raised under the next administration .
- *Capital Gains Tax*: The current corporate tax rate is 21%, which is considered historically low ². Buffett is taking advantage of this rate to realize profits, as higher taxes could be imposed in the future.
- *Apple's Performance*: Apple's revenue has been declining, and the company faces significant headwinds, including decelerating revenue growth, declining iPhone sales in China, and legal woes
- *Valuation*: Apple's valuation is considered high, trading at around 30 times projected profits in its fiscal year ending in September 2025
- *Berkshire's Portfolio*: Apple still accounts for 40% of Berkshire Hathaway's $336 billion portfolio, despite the sale
