HMH
2024-08-10
$Apple(AAPL)$  

Warren Buffett's decision to sell nearly 50% of Berkshire Hathaway's stake in Apple (AAPL) has certainly raised eyebrows.

Would I Sell Apple as Buffett Did?

As an investor, my approach might differ from Buffett's. Here are my considerations:

1. Valuation and Diversification: Buffett's sale could be driven by a desire to diversify Berkshire's portfolio and reduce exposure to a single stock, especially one that had grown to represent a significant portion of their holdings.

2. Tax Considerations: I know very little about US taxation but Buffett mentioned potential changes in capital gains tax rates as a reason for locking in gains. This strategic move could be aimed at optimizing tax liabilities.

3. Market Conditions: The broader market conditions and Apple's valuation might also play a role. Despite strong performance, Apple's stock has been trading at high valuations, which might have prompted Buffett to take profits.

Would I Buy the Apple Stocks Buffett Sold?

Given Apple's strong fundamentals, including its robust services business and liquidity position, I would buy AAPL shares Buffett sold only if it hits my target price. Apple's innovation, brand loyalty, and diversified revenue streams make it an attractive long-term investment.

Target Price for AAPL

Analysts have varied opinions on Apple's target price. The average price target is around USD248.59 (https://www.msn.com/en-us/money/topstocks/apple-stock-nasdaq-aapl-why-investors-shouldn-t-worry-about-buffett-s-sale/ar-AA1olPej?ocid=BingNewsSerp), implying a potential upside from current levels. However, my target price is of USD175 to ensure sufficient margin of safety.

What are your thoughts on Apple's future prospects and target price?


Are You Willing to Take Over Buffett's Apple Shares?
It's reported that Buffet sold 50% of Apple stock. Apple's revenue and EPS exceeded expectations, with a decline in iPhone revenue and a decrease in Greater China revenue. ------------------ Will you sell Apple as Buffett? Or are you willing to take over the Apple shares that Buffett sold? What's your target price for Apple's decline?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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