The 'stock god' Buffy sold apples with a huge amount of money, which may be the greatest farewell in investment history.
According to the latest financial report released by Berkshire Hathaway, which is led by Warren Buffett, Buffett continued to sell Apple Inc. stocks in the third quarter of this year, and as of the end of the third quarter, his shareholding had decreased to 300 million shares. Since the beginning of this year, Buffett has continued to sell off Apple Inc. stocks, selling about two-thirds of them compared to over 900 million shares at the beginning of the year.
Buffett's investment in Apple Inc. can be regarded as the greatest legendary case in investment history.
Looking back at Buffett's investment history in Apple Inc., it can be found that he started buying from the first quarter of 2016 and completed his position building in the second quarter of 2018. As of the end of the second quarter of 2018, Berkshire Hathaway held 252 million shares of Apple Inc. stock. Since then, it has been firmly held until the first quarter of 2024 when it began to sell heavily.
Based on the range of Buffett's purchase of Apple Inc. stock and the trend of Apple Inc.'s stock price, it can be roughly estimated that Buffett spent approximately $37.5 billion to buy Apple Inc. stock. Due to the split of Apple Inc.'s stock into 4 shares per share on August 31, 2020, although about one tenth of Apple Inc.'s stock holdings were sold in the second half of 2020, resulting in a capital recovery of approximately $10 billion, Berkshire Hathaway still holds over 900 million shares of Apple Inc. by the end of 2023.
Entering 2024, Buffett began to sell a large number of Apple stocks, selling 116 million shares in the first quarter and recovering approximately $20 billion in funds; In the second quarter, 389 million shares were sold and more than 70 billion US dollars were recovered; In the third quarter, we continued to sell 100 million shares and recouped approximately $22 billion in funds. As of the end of the third quarter of this year, Berkshire Hathaway's stake in Apple Inc. had decreased to 300 million shares, with a market value of approximately $70 billion. Since the fourth quarter, Apple's stock price has remained stable, basically above $220.
Based on the cost of Buffett buying Apple Inc. stock and the funds recovered from selling it, it can be roughly calculated that Buffett's total profit from investing in Apple Inc. stock may exceed $150 billion. The more than $120 billion it sold has already exceeded the total purchase cost of $37.5 billion, and the current holdings of nearly $70 billion are all net profits.
In his investment in Apple Inc., Buffett not only bought heavily at low levels, but also held heavily for a long time until this year when he sold heavily. In a situation where most of the profits have already been secured, it can be considered a complete victory.
In the history of secondary market investment, being able to make over $150 billion in one company is unprecedented and difficult to come by. Considering that Buffett is already 94 years old, his massive sales of Apple stock this year can be considered the end of a legendary investment.
Buffett's investment in Apple once again proves that his title as the "Stock God" is truly deserved. For the vast majority of investors, it is rare for them to understand the essence of investing at a very young age like Buffett, and to persist throughout their lives with good health and longevity.
For investors, after reading Buffett's personal biography 'Rolling Snowball', most of them will be deeply impressed by his investment journey. Having watched Buffett's documentary 'Becoming Warren Buffett', one will have a deeper understanding of investing and the power to adhere to principles and focus on moving forward. Having read Buffett's letters to shareholders over the years, one will have a deeper understanding of investment and comprehend where greatness comes from.
The Way is simple, but for the vast majority of people, it is not easy to truly understand what the right path is, and even if they do, it is difficult to persist. As stated in the Tao Te Ching, "When a sergeant hears the Tao, he diligently follows it; when a sergeant hears the Tao, he remains as if he were dead; when a corporal hears the Tao, he laughs heartily
Since September 24th, the market has experienced a strong upward trend, with many investors quickly entering the market and a significant increase in the number of account openings. Many new investors who enter the market often place too much emphasis on short-term high returns, but this is actually difficult to achieve. For them, reading Buffett's biography and his letter to shareholders is like sharpening a knife without missing a chopping stick.
The sale of Apple Inc. stock by the "stock god" may be the greatest farewell to the capital market. However, capital never stops, and legends will come again.