Apple (NASDAQ: AAPL) needs little introduction. In fact, the iPhone maker is now the most valuable company in the world thanks to anticipation for its new Apple Intelligence artificial intelligence (AI) platform and some recent weakness in the shares of rival Microsoft, which Apple replaced in the top spot.
However, not every investor has been impressed with the tech giant, as a number of high-profile billionaires sold the stock in the second quarter, according to 13-F filings from the SEC. Let’s take a look at three of the top investors who sold Apple stock, and what these sales may mean for you.
Image source: Getty Images.
1. Berkshire Hathaway
No investor gets more attention than Warren Buffett, and some investors were stunned when his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) conglomerate unloaded much of his stake in Apple, a company he’s touted as “probably the best business I know in the world.”
Buffett has also said he thinks of Apple as Berkshire’s third business, after its wholly owned insurance and railroad subsidiaries.
Given Buffett’s past comments on Apple, it might be surprising that Berkshire is dumping its shares of the iPhone maker, following a similar move in the first quarter. In the second quarter, Berkshire Hathaway sold 389.4 million shares, or roughly half of its stake in the company, worth roughly $80 billion.
It wasn’t clear why Berkshire decided to sell Apple stock. Buffett alluded to the threat of a higher capital gains tax rate, which seemed to have faded since earlier this year, and selling Apple does help to clear the deck for Berkshire’s tax liability. Notably, Berkshire’s keeping that money in Treasury bills rather than investing it in other stocks.
Buffett’s comments in Berkshire’s shareholder letter show he believes the stock market is expensive, and he likely views Apple similarly as it trades at a price-to-earnings ratio of 34.
2. D.E. Shaw
David Shaw is the billionaire behind the hedge fund D.E. Shaw. Shaw is a computer scientist known for investing strategy on math and algorithms called quantitative trading.
D.E. Shaw was also a seller of Apple stock, shedding 4.8 million shares to raise roughly $1 billion. The hedge fund still has nearly 10 million shares of Apple stock.
Shaw has owned the stock since the first quarter of 2004, meaning the stock is up nearly 50,000% since the fund first started buying it. While it’s unclear why D.E. Shaw is selling the stock, Apple’s valuation likely played a role, and taking profits after a 20-year run makes sense.
It’s hard to fault the fund for selling the stock after a gain of nearly 500 times its initial investment.
3. Susquehanna International Group
Billionaire Jeff Yass of Susquehanna was also dumping shares of Apple in the second quarter. Like D.E. Shaw, Susquehanna is also known for its quantitative trading strategy, and that fund dumped 2.6 million shares of Apple stock in the second quarter, leaving it with 6.2 million shares.
Susquehanna has also owned Apple stock for a long time, first buying it in the third quarter of 2008. In other words, it also has significant gains to cash in on, so it’s not surprising to see it sell the stock now that its valuation is close to as high as it’s been in modern history.
Should you sell Apple?
Before you consider selling Apple, it’s worth noting that all three of these billionaire-led funds still own some shares of Apple, and they’ve all held the stock for at least several years.
At this stage, Apple’s potential gains seem more limited due to its valuation and market capitalization of around $3.5 trillion, but its economic moat remains as strong as ever, especially as Apple Intelligence looks set to entrench its installed base even further. Therefore, there’s no need to sell Apple stock right now.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 793% — a market-crushing outperformance compared to 168% for the S&P 500.*
They just revealed what they believe are the 10 best stocks for investors to buy right now… and Apple made the list — but there are 9 other stocks you may be overlooking.
*Stock Advisor returns as of October 7, 2024
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
