Buffett Is Selling Apple Stock. The Reason Why Is Eye-Opening.

Warren Buffett's Berkshire Hathaway has started selling off its Apple stock, despite previously being bullish on the tech giant. This shift comes as Apple once constituted over half of Berkshire's portfolio, but now represents less than 40%. The primary reason for the sell-off is to capture gains before potential increases in corporate tax rates, which are anticipated to rise from the current 21%.

Apple's business dynamics are also changing, with slowing iPhone sales and underwhelming new product launches like the Apple Vision Pro headset. Despite a robust management team that has maintained flat earnings per share, the broader challenges have led to a revenue drop from $94.8 billion to $90.8 billion year-over-year. As Apple's stock continues to demand a premium valuation, concerns grow regarding the sustainability of its core business performance.