Berkshire Hathaway trims Apple: The Investment Committee debates the move

We mentioned Apple obviously in the context of the mega caps. I do want to circle back just because of what came out this weekend at the Berkshire annual meeting where they trimmed their apple steak by some 13% during the first quarter. Still their largest holding suggested it was for tax reasons. Mr. Buffett saying it was quote, extremely likely that Apple will remain Berkshire’s largest holding at the end of this year. Just give you gives you an idea of the conviction that he still has in this name. He obviously raved about it. Tim Cook was at the meeting too. Brian you you still own Apple. You don’t take anything from this, you take it at face value. About the tax idea but also this turn around if you want to call it such in Apple really that that it had last week and whether it’s a turning point for those shares given a little bit back today but not not very much. Yeah always, first of all always take Warren Buffett at face value. So we’ll we’ll we’ll leave that to the side is that I think what’s interesting about Apple we talked about this on you know closing bell last week is I was like sentiment is so negative. I think this stock pops into earnings and what’s interesting is you’ve had before earnings it was below the 5100 and 200 day moving average. Today it is above all three. And so you’ve had an extreme shift but only in sentiment but now in technicals. But technically if it can stay above this and start building a base, you say brighter days are ahead for Apple. And I think that from the revenue growth perspective where where I’ve been just like their revenue growth has not been growing over the last few years. But actually if you go back 10 years, the revenue growth has doubled. But to me what’s interesting is their margins, their operating margins are up about four percentage points from 10 years ago. So they can continue to keep their revenue base, even grow it slowly keep these 30 plus percent margins. I think the market is going to continue to value Apple at the premium at trade that today.