Berkshire Hathaway has sold most of its shares in IBM and placed a large investment in Apple which has investors wondering if they should do the same. Warren Buffett made a similar move in November and it paid off then.
Warren Buffett has decided to sell 94% of Berkshire Hathaway’s stocks in IBM to invest an additional 23% in Apple. The move means that Berkshire Hathaway now owns 165 million shares in Apple and it has strengthened the conglomerate’s role as the fourth largest Apple shareholder. It also follows the pattern that Buffett started at the end of last year.
In November, Warren Buffett told CNBC that he was getting worried about IBM and that “he was more sure about Apple’s future.” At the same time, he also decided to sell 34% of Berkshire Hathaway’s holdings in IBM and placed another major investment in Apple.
Anyone who followed Buffett’s prediction in November has gotten a solid pay-off since the Apple stock has grown far more than IBM. Because of this, traders are now wondering if they should listen to one of the most legendary investors ever and invest in Apple or stick to their own plan.
We cannot tell you how to invest and even though Warren Buffett is known to make good investments, he has also been wrong on several occasions. Therefore, we urge you to do your own research and only invest when you find value on you believe in.