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Warren Buffett's $21 Billion Mistake: Apple's Unrealized Gains

Clyde MorganSunday, Nov 10, 2024 5:16 am ET
1min read

Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has made a significant misstep in his investment strategy this year, costing him an estimated $21 billion in unrealized gains. The mistake lies in his decision to sell shares of Apple Inc. throughout 2023, despite the tech giant's strong performance and growth prospects.
Buffett, known for his value investing approach, has long been a proponent of holding onto stocks for the long term. However, his decision to sell shares of Apple, which he had previously referred to as his "biggest mistake" of 2022, has proven to be a costly error. Despite Apple's impressive run this year, Buffett's decision to sell shares has cost Berkshire Hathaway a significant amount of unrealized gains.
One of the primary reasons for Buffett's decision to sell shares of Apple was the company's high valuation. Apple's stock price had surged in recent years, and Buffett believed that the company's valuation was no longer attractive. However, Apple's strong fundamentals and growth prospects have continued to drive the stock's performance, even as Buffett sold shares.
Buffett's decision to sell shares of Apple also highlights the importance of patience and long-term thinking in investing. By focusing on the company's short-term valuation, Buffett missed out on the opportunity to benefit from Apple's long-term growth prospects. This mistake underscores the importance of maintaining a disciplined, long-term approach to investing, even in the face of market volatility and changing valuations.
In addition to his decision to sell shares of Apple, Buffett has also made other investment mistakes in recent years. His investment in Occidental Petroleum, for example, has struggled due to weak oil and gas prices and increased competition in the renewable energy sector. Buffett's investment in the airline industry was another costly mistake, as he sold all of Berkshire's airline stocks at a significant loss after the COVID-19 pandemic broke out, and the stocks have since rebounded.
Despite these mistakes, Buffett remains one of the most successful investors of all time. His track record of success speaks to his ability to learn from his mistakes and adapt his investment strategy accordingly. As the Oracle of Omaha once said, "It's good to be humble, and I do not think there are very many people who would characterize me as having been boastful. But I am very, very good at what I do."
In conclusion, Warren Buffett's decision to sell shares of Apple has cost him an estimated $21 billion in unrealized gains. This mistake highlights the importance of patience, long-term thinking, and maintaining a disciplined approach to investing. Despite this setback, Buffett's track record of success speaks to his ability to learn from his mistakes and adapt his investment strategy accordingly.
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11/12

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11/10

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breakyourteethnow
11/10
$AAPL Unbeatable. Check it out: https://www.instagram.com/reel/DCF6CDWoUth/?igsh=ZWVhYXR4MHczeTE5
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Silgro94
11/10
Occidental Petroleum and airline industry investments were mistakes too, but at least those weren't due to overestimating the 'next big thing' like Apple. Consistency, please, Warren
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MarshallGrover
11/10
This is exactly why I love following Buffett's moves! Even his mistakes teach us valuable lessons about patience and long-term thinking. Thanks, Warren!
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Ogulcan0815
11/10
Everyone's so quick to criticize. What about Berkshire's other successes? Can we please just appreciate the wins alongside the losses?
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throwaway0203949
11/10
Finally, someone points out Apple's valuation as a reason to sell! Wonder if Buffett would've made the same call if he was a retail investor...
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LurkerMcLurkington
11/10
Just another example of a brilliant mind being clouded by short-term valuation worries. Still, my respect for Buffett remains unwavering
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confused-student1028
11/10
Not sure what's more surprising, the fact that Buffett made a $21 billion mistake or that the article manages to make it sound like a long-term learning experience
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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