Buffett sold Apple. Should you sell it too?

According to 13-F form Berkshire Hathaway sold approximately 10 millions of Apple Inc shares in the 4th quarter of 2023. It was a position adjustment total for $1.93 billion. Also Buffett`s company reduced its positions in Paramount and HP.

Among the buys Berkshire Hathaway increased its positions in oil companies such as Chevron and Occidental Petroleum.

Buffett’s sale of Apple shares was perceived by many analytics as a sign of pessimism about future perfomance. But wait… it was only about 1% reduction of the position and AAPL remains the largest holding that takes up over 50% of the portfolio!

Also AAPL financial statement for the fiscal quarter ended December 30, 2023 doesn`t show any significant signals for the stock price to fall. With revenue equals $119 bln and net income in amount allmost $34 bln per quarter the business is still very profitable! The net profit margin is more than 20% while return on equity (ROE) is higher than 150%!

So we still think that Apple is actual investment idea according to our rating based analysis. The rating now is 109% that means that Apple is better than an ideal company to invest right now. As for stock valuation analysis Apple is quoted at the price level $183 per share that equals 28.5 price-to-earnings multiple.

This means the company is valued slightly above average, but still has the potential to grow to its top valuation. Apple Vivsion Pro could fuel future financials growth up.

Take care of yourself and your investments.