Buffett Reduces Apple Stake Amidst China Slowdown and Berkshire Buybacks

Warren Buffett, renowned for his successful investment firm Berkshire Hathaway, has been gradually decreasing its stake in Apple. Despite calling Apple a "better business" in 2023, Berkshire Hathaway has reduced its Apple holdings from 49% of its portfolio in late 2023 to an estimated 400 million shares (down 55% from December 2023) in June 2024. However, Buffett remains confident in his own company, investing $5 billion in Berkshire Hathaway stock buybacks over the past three quarters. While Apple boasts strong brand loyalty and high profit margins, particularly in its software and services, recent financial results show declining sales in China, a significant market for the company. Despite exceeding overall financial expectations, this slump in a key market, coupled with increased competition from Chinese brands, may explain Buffett`s recent divestment in Apple.