China Fund News reporter Wu Jun
Warren Buffett reduced his holdings in Apple in the second quarter of this year, which sparked heated discussions in the market. According to the latest financial report, Berkshire Hathaway significantly reduced its stake in Apple from 789 million shares to about 400 million shares in the second quarter, a drop of nearly 50%.
In this regard, on August 4, Dan Bin, chairman of Oriental Harbor, expressed his views on his Weibo. He believes that Berkshire's reduction of holdings is not particularly large in terms of the impact on the market and the company, and the more important thing is the company's own operation and future prospects. But 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.
In addition, on the evening of August 3, Duan Yongping (screen name Avenue Invisible I have style) said in response to questions from netizens: "I have no plan to reduce (Apple) holdings, unless I am called away." The main thing is that I don't know what else I can buy after selling it now. And I think in the long run, I can accept what Apple can bring me in the future. Warren Buffett is different, he is a professional investor, and he will have more options. ”
However, Bin and Duan Yongping commented on Buffett's reduction of Apple's holdings and said that he would not reduce his holdings
The 13F document disclosed on the website of the United States Securities and Exchange Commission showed that as of the end of the first quarter of this year, Apple was still the largest holding of Buffett's Berkshire Hathaway, holding 789 million shares, and the market value of the holding at the end of the quarter was as high as 135.361 billion US dollars, accounting for 40.81% of the portfolio, which was reduced from the end of last year.
On the evening of August 3, Berkshire Hathaway released its latest financial report showing that as of the end of June, the company significantly reduced its stake in Apple to about 400 million shares in the second quarter, a reduction of nearly 50%. Berkshire currently owns about 2.6 percent of Apple, which is worth about $88 billion based on Friday's closing price of $219.86 per share.
Regarding Buffett's significant reduction in Apple, Dan Bin, chairman of Oriental Harbor, posted on Weibo on August 4 that he saw the news that "Berkshire's Apple shares have dropped from 789 million shares in the first quarter to about 400 million shares", and the reduction is not surprising at all, but it is still a little surprising to reduce the holdings so much.
"Even if we see Pa Lao reducing his holdings, we don't have the idea of following the reduction, because in the era of artificial intelligence, Apple is also one of the companies that benefit the most. After the artificial intelligence mobile phone comes out, the probability of Apple's new growth pole and growth space is still relatively large. Dan Bin talked about his own investment logic.
But Bin also talked about Buffett's history of buying Apple, which Berkshire began buying in 2016 under the influence of Buffett's investment lieutenants, Ted ·Weschler and Todd · Combus. It should be said that in the past eight years, Apple has made a huge contribution to Berkshire's performance, and it is not known whether Berkshire will reduce its holdings in the future.
But Bin stressed that even if Berkshire reduces its holdings so much, the impact on the market and the company is not particularly large, and what is more important is the company's own operation and future prospects.
In addition, Dan Bin also said that as a practitioner of the younger generation, he should grow on the shoulders of giants, and the moat, business model, and profitability should be the focus of thinking and learning. But similar to the Big Seven investments, although Buffett has only been involved in investing in Apple for eight years from 2016 to the present, it does not prevent these companies from achieving great success and becoming the most important component of the S&P 500 index.
Subsequently, Dan Bin replied to fans that in fact, at this year's shareholders' meeting, Buffett responded for the first time to the reason for reducing his holdings in Apple - selling Apple's shares to avoid higher capital gains taxes in the future. "I just don't know, after this sale, will I buy it back at a low price? Time will tell! ”
As we all know, in recent years, Oriental Harbor, helmed by Dan Bin, has invested in artificial intelligence stocks and achieved good results. He has previously said that artificial intelligence will bring innovation in all aspects, such as digital human technology, AI doctors, brain-computer interfaces, etc. The impact of AI on human society will be comparable to the qualitative changes brought about by the advent of the steam engine era.
In terms of investment direction, Dan Bin previously revealed that he is currently mainly focusing on the infrastructure layer of AI, focusing on the world's most profitable companies, such as Nvidia, Amazon, Google, Microsoft, Apple, etc. Because the development of AI requires huge capital investment, these companies are more powerful in this regard.
In addition, on the evening of August 3, Duan Yongping, a well-known investor (online name Dadao Invisible I Have Style), said in response to questions from netizens: "I have no plan to reduce my holdings, unless I am called away." The main thing is that I don't know what else I can buy after selling it now. And I think in the long run, I can accept what Apple can bring me in the future. Warren Buffett is different, he is a professional investor, and he will have more options. ”
Apple's stock price hit an all-time high in July this year, and Warren Buffett has previously explained the reason for the reduction
In terms of market performance, after hitting a low of $163.85 per share in late April this year, Apple's stock price started a round of rally, and rose to a record high of $237.23 per share on July 15. However, the stock has fluctuated greatly since late July, closing at $219.86 per share on August 2, with a total market capitalization of $3.4 trillion.
Overall, Apple is up 14.50% this year as a whole, and it rose by more than 49% last year. Market participants believe that with such a performance, it is normal for Buffett to take profits and reduce his holdings.
In the first quarter of this year, Buffett reduced his stake in Apple by 13%, and Buffett explained the reason for the reduction at the shareholder meeting in May. He said the reduction in Apple's stock was due to tax reasons after the investment yielded a significant return, rather than based on a long-term judgment on the stock. "Apple is likely to remain Berkshire's largest single stock at the end of 2024, and we will still hold shares in Apple, Coca-Cola and United States Express for the long term."
Buffett pointed out that if the United States government raises capital gains taxes in the future to cover rising fiscal deficits, then selling "some apples" this year will benefit Berkshire shareholders in the long run.
Editor: Xiao Mo
Review: Xu Wen