Recently, the news of Buffy's massive sale of Apple stocks has attracted huge attention in the investment circle.
Today, Dan Bin, Chairman of Dongfang Port, issued a statement stating that Apple accounts for about 10% of Dongfang Port's portfolio, and even if we see Buffett reducing his holdings, we have no intention of following suit.
Why is there a large-scale reduction in Apple holdings? Previously, Buffett hinted that it was a tax cut, but now the massive sell-off is not just a tax saving measure.
On the same day, investment guru Duan Yongping also gave his understanding: "If Apple's stock price remains so strong, I wouldn't be surprised if Lao Ba sells out." Duan Yongping also stated that he has no plans to reduce his holdings.
Dan Bin: Not following the idea of reducing holdings
On the evening of August 3rd Beijing time, Berkshire Hathaway, a subsidiary of Warren Buffett, disclosed its financial report showing that the company sold 49.4% of its stake in Apple Inc. in the second quarter, with its holdings plummeting from 789 million shares at the end of the first quarter to approximately 400 million shares at the end of the second quarter.
As of the end of the second quarter, Berkshire Hathaway held approximately 2.6% of Apple's shares, valued at approximately $88 billion based on the closing price of $219.86 per share on August 2, and remains Berkshire's largest holding.
Buffett's massive sale of Apple stocks has shocked the market. Dongfang Port Chairman Dan Bin stated in a post today that it is not surprising to see Buffett reduce his holdings, but it still feels a bit surprising to see so many reductions.
However, Dan Bin also stated, "Apple accounts for about 10% of the portfolio of Dongfang Port. Even if we see Ba Lao reducing his holdings, we have not followed the idea of reducing them. Because in the era of artificial intelligence, Apple is also one of the most beneficial companies. After the emergence of artificial intelligence phones, the probability of new growth levels and growth space is still relatively high
Dan Bin pointed out that Berkshire Hathaway began purchasing Apple stocks in 2016. Over the past 8 years, Apple has made significant contributions to Berkshire's performance, and it is uncertain whether Berkshire will completely reduce its holdings in the future.
From a long-term investment perspective, it is very difficult to outperform the S&P 500, and the proportion of companies that change the world in this index is increasing. We believe that in the era of artificial intelligence, this will still be the case and even more prominent. We are willing to persevere, although Berkshire's reduction in Apple holdings also 'suggests risks'... Success in any investment is not an easy task, you can only trust your own judgment, believe in what you believe in, and believe in the power of your own heart, "said Dan Bin.
As of the end of the second quarter, Berkshire Hathaway's cash reserves reached a new high of $276.9 billion, compared to $189 billion at the end of the first quarter. The significant increase in cash reserves in the second quarter was mainly due to Berkshire Hathaway's net sale of $75.5 billion worth of stocks. Berkshire Hathaway has sold more stocks than it has bought for seven consecutive quarters.
Duan Yongping: If Apple's stock price remains strong, it's not surprising that Buffett sold out
The reason why Buffett sold apples wildly has also attracted market attention.
In the first quarter, Buffett reduced his holdings of Apple stock by 13%. It hinted at the Berkshire Hathaway annual meeting in May that this was due to tax reasons. Buffett pointed out that if the US government wants to make up for the continuously rising fiscal deficit and increase capital gains tax, then this year's "small sale of apples" will benefit Berkshire Hathaway shareholders in the long run.
However, in the second quarter, directly cutting Apple's holdings in half and selling over $70 billion was not just due to tax reasons.
Today, investment guru Duan Yongping also expressed his understanding on social media. In fact, as early as July 27th, Duan Yongping posted, "It's a bit surprising that I didn't see Buffett reduce his holdings of Apple. It's a bit interesting. It seems that he reduced his holdings a bit when the price was between $180 and $190 per share. At this price point, I thought he would continue to reduce his holdings
As expected, Buffett did significantly reduce his holdings of Apple in the second quarter. Duan Yongping said, "This is logical
However, Duan Yongping said, "I have no plan to reduce my holdings unless I am called (to sell call options, the stock price skyrockets to the exercise price, and the stock is sold for profit) and leave. Mainly, I don't know what else to buy after selling. And I think in the long run, I can accept the returns that Apple can bring me in the future. Buffett is different, he is a professional investor, and he will have more choices
Duan Yongping further stated that Apple's stock price has been very strong recently (which is actually one of the reasons), and Lao Ba must be able to sell as much as possible. I can understand the reason why Lao Ba sold Apple, after all, this is not his comfortable field, and PE has become so high. In addition, he may have many options in his mind, or simply feel that the current stock market is too high, so he should save some cash and wait for opportunities. If Apple's stock price remains so strong, I wouldn't be surprised if Lao Ba sells out
In addition, Duan Yongping also said, "Once Buffett decides to sell, there is only one reason why he will sell less, and that is when the price drops. Apple has been so strong lately, and it is reasonable for him to sell as much as possible
After the stock market closed on August 1st local time, Apple released its Q2 2024 financial report, which showed that Apple achieved revenue of $85.777 billion this quarter, a year-on-year increase of 4.9%, higher than analysts' expectations of $84.46 billion; Non GAAP net profit was $21.448 billion, a year-on-year increase of 7.9%.
This means that Apple has reversed the downward trend of the previous quarter, and multiple regions such as the United States and Europe have achieved varying degrees of year-on-year growth.
In September, Apple is about to hold its annual autumn press conference, and may launch the iPhone 16 series with some Apple Intelligence. Cook has high hopes for Apple Intelligence, stating during a conference call, "With the launch of Apple Intelligence, we are very excited about the product value we can provide to our users, and we are also confident that our product value will become one of the reasons why users choose to upgrade and replace