In today’s episode of the 24/7 Wall St. podcast Doug McIntyre and Lee Jackson discuss what would happen to shares of Apple (Nasdaq:AAPL) if their largest shareholder, Warren Buffett, starts to trim his stake. Because of how much The Oracle of Omaha owns, even minor sales could spook Wall St. and send shares careening lower.
Transcript:
So another piece of bad news for Apple, there was one study about four weeks ago that showed iPhone sales in China were down 20% year over year, and there was another one two days ago that said they were down 19%, so fairly consistent.
China is the world’s largest smartphone market, and Apple investors are now asking themselves the question, what is gonna save us here?
Lee, one of Apple’s largest investors, maybe its largest, is Warren Buffett.
So what’s Warren Buffett going to do?
You know, that’s really a good question, Doug, because remember, he did sell 10 million shares to cut his stake down a little bit.
He still owns a 5.9% stake of the total float, and it makes up 41% of Berkshire Hathaway.
And I think if you’re an Apple investor and things start to slide off the cliff a little bit, what’s he going to do?
He can’t sell it because if he does start selling, the stock will just absolutely collapse.
And between, he has 905 million shares.
So that could prove to be a pretty dicey sell-off if he does indeed start to lose his love of the stock.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.