One of the most notable Wall Street entities and one of the largest and most prominent companies in the world has long been connected. However, that began to shift throughout this year. Now, all eyes are on Apple (APPL) and if Warren Buffett will sell off all of his stock holdings in 2025.
Regardless of how important the tech company has been in Buffett’s Berkshire Hathaway portfolio, things shifted in 2024. The tycoon opted to sell his position at various times throughout the last twelve months, creating some concern and intrigue amongst investors. Now, all eyes are on whether or not Buffett will go all the way and sell off his entire holdings.
Buffett May Sell Apple Stock He Has Been Accumulating Since 2016
There is no denying that Apple has long been one of the most impressive companies in the world. The technology manufacturer was the first to surpass a $1 trillion market cap back in 2018. That was not the end, however, as it would continue setting records. It was the first to reach both $2 trillion and $3 trillion in 2020 and 2023, respectively.
One of the most notable benefactors of that success was Berkshire Hathaway, who first purchased the stock in Q1 of 2016. After years of accumulating, the company shifted in 2024. Despite the success of Apple, Warren Buffett began selling off APPL stock, leading many to wonder if it will continue in 2025.
The fundamentals of the stock are much different than they were in 2016. Since Buffett’s first purchase, revenue and earnings per share (EPS) have increased 66% and 157%, respectively. Although a process called multiple expansion creates outliers, with stocks no longer returning the amount their EPS rises.
This indicates investors are willing to pay more for a stock than previously. That has happened with Apple, as the stock has grown 850% since his first purchase. Moreover, that far exceeds its EPS, trading 41 times its earnings.
That has left Apple looking fairly unattractive from an investment perspective. Therefore, Buffett is expected to continue selling off his position with just 6% revenue growth projected next year. Since Q3 of 20223, Berkshire Hathaway has decreased its holding from 916 million shares to just 300 million. That should continue to drop this year.
