Apple Inc. (NASDAQ:AAPL) investors have had a rough start to the year, with the company’s share price down about 7% year to date while the SPDR S&P 500 ETF (NYSE:SPY) has experienced a 9% gain during the same period.
There are several reasons for this disappointing start, including fears of lower demand in China, concerns about falling behind in the artificial intelligence race, regulatory pressures, and low growth. Jordan Klein, an analyst at Mizuho, sees another major risk on the horizon and warns that things could get worse for Apple, with the possibility of Warren Buffett selling off shares.
Berkshire Hathaway Inc. (NYSE:BRK) recently disclosed that Buffett sold a marginal 1% of his massive position in Apple. News of Berkshire Hathaway selling more shares could put pressure on the stock, as the company owns 5.9% of all outstanding Apple shares.
In addition to trimming its Apple stock, Berkshire also exited positions in StoneCo Ltd. (NASDAQ:STNE), Markel Group Inc. (NYSE:MKL), Globe Life Inc. (NYSE:GL), and D.R. Horton Inc. (NYSE:DHI), as well as significantly trimming stakes in HP Inc. (NYSE:HPQ) and Paramount Global (NASDAQ:PARA).
Despite the short-term worries, Dan Ives, a senior equity research analyst at Wedbush Securities, views the situation as a strong buying opportunity, giving Apple’s stock a price target of $250 per share. In the past five years, Apple’s stock has seen a gain of over 267%.
For long-term investors in Apple, it has paid off to ignore short-term concerns and stay the course. The stock has seen significant gains over the years, with investors who bought and held since the IPO in 1984 sitting on an over 142,000% gain.
While uncertainty looms, investors will have to wait until mid-May for the next updates on Berkshire’s portfolio. It’s essential to stay informed and make educated decisions when it comes to investing in companies like Apple.
This article originally appeared on Benzinga.com and is not intended to provide investment advice. All rights reserved.
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