If I held Apple shares in a trading account, high current prices are something I might react to. Berkshire doesn't hold it in a trading account. Their style is to hold for however long the business' prospects remain bright and without undue risk, through high prices and low. This seems to work well for them.

Though minimum tax rules may have been a bonus factor in the decision, I don't think the big reduction in Berkshire's Apple position was in any way a reaction to high prices. I'm pretty convinced it was concern about true business risk having risen to a level--still low, but higher--which was unacceptable in a position that large. I suspect was not unconnected with geopolitical exposure.


I am pretty sure Buffett’s reduction in Apple holding was primarily due to concentration risk.