Core Insights - Berkshire Hathaway has significantly reduced its stake in Apple, selling 677,347,618 shares over two years, which is a 74% reduction, including 41,787,236 shares sold in Q3 2023 [1][3][5] - Warren Buffett's investment strategy is rooted in value investing, and he is known for selling stocks when he believes they are no longer a good deal, despite being a long-term optimist [2][4] - The latest 13F filing revealed that while Apple was a major holding, Berkshire has introduced Alphabet as a borderline core holding, purchasing 17,846,142 shares valued at over $4.3 billion [3][11][12] Apple Inc. Insights - Apple's growth has stagnated, particularly in physical device sales, with subscription services being the only bright spot [7] - The company's valuation has reached a trailing-12-month P/E ratio of nearly 37, which is a 22% premium compared to its average over the past five years [8] - Buffett's selling of Apple shares suggests that it is no longer perceived as a bargain, indicating a shift in investment sentiment towards the company [9] Alphabet Inc. Insights - Alphabet has a sustainable competitive advantage, holding 89% to 93% of the global internet search market, which supports its advertising pricing power [13] - The company is experiencing significant growth in its Google Cloud segment, with a 25% increase in sales year-over-year, and a revenue run rate exceeding $60 billion [15] - Alphabet's financial health is strong, with $98.5 billion in cash and cash equivalents, allowing for aggressive investments and shareholder returns [16] - The projected annual sales growth rate for Alphabet is 13% to 14%, suggesting better long-term upside compared to Apple, despite a TTM P/E ratio of 27 [17]