Data shows that Apple's "loyal fan" and "stock god" Warren Buffett significantly reduced his holdings of Apple stocks in the second quarter, attracting widespread attention from global investors.
On Saturday local time, Berkshire Hathaway, owned by Warren Buffett, released its Q2 2024 financial report. After reducing its holdings in its top heavy stock, Apple, by nearly half, Berkshire Hathaway's cash reserves reached a record high of $276.9 billion.
Regarding Buffett's selling of Apple stocks and hoarding of cash, some analysts believe that this move indicates Buffett's lack of confidence in Apple's growth prospects.
Some market participants also interpret this as Buffett's reduction in holdings possibly being related to broader economic outlook concerns. Recently, Berkshire Hathaway has also been selling its second largest holding, Bank of America.
But there are also some people who exclaim that they cannot understand the actions of the "stock god", such as Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber.
The stock god doesn't understand technology?
On Sunday local time, Geber expressed his views on Buffett's sale of Apple stocks on X platform, criticizing Buffett's lack of understanding of technology.
Buffett doesn't understand technology, that's for sure. For long-term investors, selling Apple before the AI revolution was a mistake, "Gerber wrote.
On August 4th, Dan Bin, Chairman of Dongfang Port, also expressed his views on this matter on his Weibo account. Dan Bin revealed that he did not follow Buffett's idea of reducing his holdings in Apple because in the era of artificial intelligence, Apple is one of the most beneficial companies.
However, in sharp contrast to Gerber's view, there is a popular saying in the market at this stage that the AI foam has burst.
As the investment boom in artificial intelligence cools down, the tech dominated Nasdaq Composite Index has fallen nearly 10% in just one month, and investors' attitudes have shifted from blindly believing in AI to expecting returns from massive AI investments by tech companies.