Why did Warren Buffett sell Apple?

YawningKitty_x_x joined discussion · Aug 6 23:01

He first entered $Apple (AAPL.US)$ back in 2016 when it traded at 10x earnings. Per FinChat:

Today's P/E: 31.6

10Y Avg P/E: 21.8

10Y EPS Growth: 15.53%

3Y EPS Growth: 8.73%

Long Term EPS Growth Estimate: 8.51%

He primarily purchased Apple when it was trading below 15x earnings, and the company was able to compound earnings at nearly 16%.

Today it hovers around 30x, with long term estimates of earnings growth around 9%.

Very different risk/reward scenarios, especially when it composed around 40% of his public equity portfolio in Q1. $Berkshire Hathaway-A (BRK.A.US)$ $Berkshire Hathaway-B (BRK.B.US)$

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