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Warren Buffett's recent decision to trim Berkshire Hathaway's (NYSE:BRK) (NYSE:BRK) stake in Apple Inc. (NASDAQ:AAPL) has caused quite a stir, with the tech giant's stock tumbling in premarket as well as day trading.
But before Apple investors hit the panic button, let's revisit a similar scenario from Buffett's past — the dramatic sell-off of Chevron Corp (NYSE:CVX) — to see what it might reveal about potential future moves.
Chart created using Benzinga Pro
Buffett's substantial reduction in Apple shares is drawing comparisons to his earlier Chevron strategy. Here's a snapshot of what happened:
Despite these significant sales, Chevron's stock faltered, dropping over 7% during this period, while the S&P 500 surged 18.5%.
Even since Buffett's final sale in the first quarter of 2024, which amounted to $1 billion, Chevron's stock has gained only 3.38%, lagging behind the S&P 500's 12% rise.
The scale of Buffett's Chevron sales — totaling over $10 billion — provides a stark contrast to his Apple transaction.
For context, Berkshire Hathaway's recent cut in Apple holdings, valued at approximately $51 billion, is significant but aligns with a pattern of strategic adjustments.
For Apple investors, Buffett's Chevron history is a crucial reference. His aggressive divestment from Chevron, coupled with the stock's subsequent underperformance, serves as a reminder of the volatility that can affect even the most robust investments.
While Apple remains a strong company, the Chevron experience highlights the importance of staying alert and prepared for potential market shifts.
For those holding Apple shares, it's a prompt to reassess your strategy and stay vigilant, ensuring your investments align with evolving market trends and conditions.
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