We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Value Trader Highlights: Berkshire Hathaway, Apple, American Express, Visa and Coca-Cola
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 18, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2416472/3-lessons-from-buffetts-apple-stock-sales)
3 Lessons from Buffett's Apple Stock Sales
Welcome to Episode #396 of the Value Investor Podcast.
(0:30) - How Much Should You Follow The 13-F Filings?
(4:10) - Investing Lessons To Learn From Warren Buffett
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Almost a year ago, Wall Street learned that Berkshire Hathaway (BRK.B - Free Report) was selling lots of shares of its largest equity holding, Apple. Apple is one of the "4 pillars" of Berkshire Hathaway and a key component of the business.
At the May 2024 Berkshire Hathaway annual meeting, Warren Buffett said they were selling for tax reasons. But the selling of the shares continued. As of the third quarter of 2024, Berkshire had sold 100 million shares. It now owns just 300 million. Apple is now just 26.2% of the Berkshire Hathaway equity portfolio, down from around 50%.
There are three important lessons value investors can learn from Buffett's sale of Apple shares.
When Berkshire Hathaway bought Apple in the first quarter of 2016, it was cheap on a price-to-earnings (P/E) basis. It had a P/E under 15, which usually indicates a company is a value. But Apple is now trading with a forward P/E of 32.3%.
And Apple has a PEG ratio, which measures the P/E divided by growth, of 2.4. A PEG ratio under 1.0 indicates a company has both value and growth. But Apple is more expensive.
Will we ever really find out why Buffett decided to start selling Apple in 2024?
American Express is now Berkshire Hathaway's second largest holding in its equity portfolio. It makes up 15.4% of the portfolio. Shares of American Express have been on a tear the last year, adding 47%.
Yet American Express still has attractive valuations. It trades with a forward P/E of 20 and has a PEG ratio of 1.5.
Visa is also a holding in the Berkshire Hathaway equity portfolio. Buffett bought it in 2011 and has never sold, or bought, more shares even as valuations soared in 2020 and 2021. Visa traded over 40x during the pandemic.
It was a small position originally, and remains so, even though the shares were up 27.8% over the last year. Yet, Visa is still trading with a forward P/E of 31. That is "cheaper" than Apple but it's too high to be considered a classic value stock.
Should investors follow Berkshire Hathaway into Visa in 2025?
Coca-Cola has been part of Berkshire Hathaway's portfolio for decades. It remains one of the largest positions in the equity portfolio, at 10.8%.
Shares of Coke are up 16.9% over the last year. It's not cheap, with a forward P/E of 23.5. Coca-Cola also has a PEG ratio of 3.8. A PEG under 1.0 indicates growth and value.
Is Coca-Cola still a buy in 2025?
What Else Should You Know About Buffett's Sales of Apple Shares?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks Value Trader Highlights: Berkshire Hathaway, Apple, American Express, Visa and Coca-Cola
For Immediate Release
Chicago, IL – February 18, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2416472/3-lessons-from-buffetts-apple-stock-sales)
3 Lessons from Buffett's Apple Stock Sales
Welcome to Episode #396 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Almost a year ago, Wall Street learned that Berkshire Hathaway (BRK.B - Free Report) was selling lots of shares of its largest equity holding, Apple. Apple is one of the "4 pillars" of Berkshire Hathaway and a key component of the business.
At the May 2024 Berkshire Hathaway annual meeting, Warren Buffett said they were selling for tax reasons. But the selling of the shares continued. As of the third quarter of 2024, Berkshire had sold 100 million shares. It now owns just 300 million. Apple is now just 26.2% of the Berkshire Hathaway equity portfolio, down from around 50%.
There are three important lessons value investors can learn from Buffett's sale of Apple shares.
1. Buy and hold forever is a myth
2. Don't fall in love with your stocks
3. You can't market time
Valuations: Does It Matter?
1. Apple Inc. (AAPL - Free Report)
When Berkshire Hathaway bought Apple in the first quarter of 2016, it was cheap on a price-to-earnings (P/E) basis. It had a P/E under 15, which usually indicates a company is a value. But Apple is now trading with a forward P/E of 32.3%.
And Apple has a PEG ratio, which measures the P/E divided by growth, of 2.4. A PEG ratio under 1.0 indicates a company has both value and growth. But Apple is more expensive.
Will we ever really find out why Buffett decided to start selling Apple in 2024?
2. American Express Co. (AXP - Free Report)
American Express is now Berkshire Hathaway's second largest holding in its equity portfolio. It makes up 15.4% of the portfolio. Shares of American Express have been on a tear the last year, adding 47%.
Yet American Express still has attractive valuations. It trades with a forward P/E of 20 and has a PEG ratio of 1.5.
Is this a buying opportunity in American Express?
3. Visa Inc. (V - Free Report)
Visa is also a holding in the Berkshire Hathaway equity portfolio. Buffett bought it in 2011 and has never sold, or bought, more shares even as valuations soared in 2020 and 2021. Visa traded over 40x during the pandemic.
It was a small position originally, and remains so, even though the shares were up 27.8% over the last year. Yet, Visa is still trading with a forward P/E of 31. That is "cheaper" than Apple but it's too high to be considered a classic value stock.
Should investors follow Berkshire Hathaway into Visa in 2025?
4. The Coca-Cola Co. (KO - Free Report)
Coca-Cola has been part of Berkshire Hathaway's portfolio for decades. It remains one of the largest positions in the equity portfolio, at 10.8%.
Shares of Coke are up 16.9% over the last year. It's not cheap, with a forward P/E of 23.5. Coca-Cola also has a PEG ratio of 3.8. A PEG under 1.0 indicates growth and value.
Is Coca-Cola still a buy in 2025?
What Else Should You Know About Buffett's Sales of Apple Shares?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.