Buffett "abandons" Apple, Wall Street rushes to reassure: Don't panic, it's just a technical adjustment!

Buffett's sale of Apple sparks heated discussion, what did the "Stock God" see? Why the significant reduction in holdings?

Some analysis suggests that Buffett lacks confidence in Apple's growth prospects, while most analysts on Wall Street urge investors to remain calm and not overinterpret this move.

According to media reports on Monday, most analysts believe that investors need not overreact, as Apple's strong financial position, brand loyalty, and potential in areas such as artificial intelligence indicate that it remains an attractive long-term investment choice.

Based on data released by Berkshire Hathaway on Saturday, the company reduced its Apple holdings by nearly half in the second quarter, with its stake value dropping from around $140 billion at the end of March to around $84 billion currently.

It is worth noting that this reduction occurred during a period of strong gains in the US stock market, with Apple's stock price rising by 23%, and the S&P 500 repeatedly hitting new highs. Moreover, this is not the first time Berkshire Hathaway has reduced its Apple holdings; at the annual shareholders meeting in May, Buffett hinted to investors that the reduction in the first quarter was related to tax considerations.

Is it for risk management?

Since Buffett first disclosed his investment in Apple in 2016, Apple's stock price has soared by nearly 900%, bringing Berkshire Hathaway billions of dollars in unrealized profits. Given this background, many analysts believe that this reduction is more about the need for risk management rather than questioning Apple's long-term growth prospects.

Joe Gilbert, Senior Portfolio Manager at Integrity Asset Management, stated:

Buffett's reduction in Apple holdings is purely for risk management considerations. If there were any concerns about Apple's long-term prospects, Buffett would completely divest. Similar to reducing positions in other stocks, Buffett has substantial unrealized gains in Apple stock.

Cathy Seifert, research analyst at CFRA, pointed out:

Even after this reduction, Apple remains Berkshire Hathaway's largest single holding. If you have such a large position, you would take profits and reduce some concentration risk. Berkshire Hathaway's investment portfolio remains quite concentrated.

Some analysts also suggest that Berkshire Hathaway's reduction may be related to broader economic concerns. Disappointing job data released last Friday raised concerns about an economic recession, causing the Nasdaq to fall into a technical correction range, with the Volatility Index (VIX) nearing 25.

It is worth mentioning that a few days before Berkshire Hathaway announced changes to its investment portfolio, Apple had just released its quarterly earnings report. The report indicated that the company's revenue is back on a growth trajectory and hinted that new AI features will drive iPhone sales growth in the coming quarters. Despite the pullback in tech stocks, Apple's stock price remained stable after the earnings report and ultimately closed the week with an uptrend.Including analysts such as Dan Ives from Wedbush, many analysts are still optimistic about the future of Apple. Ives pointed out:

Apple is in a major upgrade cycle that will drive revenue growth in 2025 and 2026. While some may interpret this as a lack of confidence signal, Apple has just delivered a strong quarterly report, and there is a super cycle driven by AI in the future. We believe now is not the time to exit