**10,000 Fans Incentive Plan
There is such a saying in the investment circle, Buffett, as a world-renowned investment master, must not be a rival with Buffett, because Buffett will make you lose badly!
There is a **breaking news that Berkshire Hathaway has **10 million shares of Apple in the fourth quarter of 2023**, which is a news that attracts attention. Based on the average share price at the time, the market capitalization of ** was about 182.2 billion US dollars, equivalent to about 13.1 billion yuan. The move may have sparked some speculation and attention in the market, as Warren Buffett and Berkshire Hathaway have been significant investors in Apple.
Despite this event, Apple remains Berkshire Hathaway's number one heavy stock. Apple accounted for as much as 50 of the disclosed holdings of assets19%, which shows Berkshire Hathaway's long-term confidence and investment commitment to Apple.
There could be multiple explanations for the reason for this **. On the one hand, this may be due to the company's investment strategy adjustment, or the expectation of future market movements. On the other hand, it could also be due to Warren Buffett's personal investment decisions, or his views on Apple's future development.
In Chun Gongzi's view, Buffett's choice of Apple's shares at this point in time is not just a simple issue. We need to understand the deep meaning behind Warren Buffett**.
Looking back on the past 2023, Apple's report card in the global technology industry has not exceeded the expectations of the industry. It is mainly reflected in the following points:
1. Insufficient product innovation: In recent years, Apple's product innovation seems to have slowed down, and the new products launched are not much different from the old ones. This has led to a decrease in consumer interest in Apple products, and sales have declined as a result.
The most typical is that Apple's blockbuster products released not long ago suffered a "rollover". Priced at a whopping $3,499, this high-end virtual reality headset is a significant expense for the average consumer. Importantly, this high-end product failed to meet consumer expectations.
2. The sales of many Apple products are less than expected
Macroeconomic factors such as slowing global economic growth and declining consumer purchasing power may also have an impact on Apple's market capitalization. In an environment of sluggish economic growth, consumers are likely to spend less on high-end products.
There have been many ** revelations that Apple's iPhone 15 series sales have fallen short of expectations. Consumers may think that whether it is the standard version or the Pro series, the upgrades brought by Apple have not lived up to their expectations. This may lead to a subset of potential buyers choosing to continue using their existing phones instead of upgrading to an iPhone.
3. Microsoft completed the overtaking of Apple's market value
Apple and Microsoft, two established giants in the tech industry, have been competing fiercely in a number of areas. Although their areas of competition do not overlap exactly, both companies are working to expand their reach and pursue growth opportunities in new technology areas. This competition is not only reflected in the product, but also in many aspects such as market share, technological innovation and investor confidence.
Microsoft, under Nadella's leadership, has excelled in recent years, successfully bringing the company into new growth areas, particularly generative AI and cloud computing. The rapid growth of these areas has created huge business opportunities for Microsoft and has also allowed it to climb its market value.
At present, the market capitalization of Microsoft Corporation is more than 304 trillion US dollars, it is the largest company in the world by market capitalization. Apple's market capitalization remained at 2$8.4 trillion, $200 billion short of Microsoft.
Conclusion: Warren Buffett has always adhered to the "value investment concept" in the investment field!
From a portfolio perspective, Warren Buffett may believe that Apple's share price is already too high and there is a risk of **. In order to avoid possible losses, he chooses a portion of the shares to maintain the robustness of his portfolio.
In addition, as the tech industry continues to evolve and new players emerge, some competitors may already pose a threat to Apple in some areas. This competitive pressure could have a negative impact on Apple's performance, which in turn could affect its stock price performance.