Apple shares were in doldrums after Buffett sales

Apple (NASDAQ:AAPL) stock was in the doldrums on Monday, not just because the market was in a broad selling mode, but also following the news that Warren Buffett’s Berkshire Hathaway sold nearly half of its holdings in the iPhone-maker.

The investment group cashed out to the tune of $88 billion in recent months, according to its second quarter report, as it sold around 390 million shares and lifted its cash reserves to $277 billion.

Given that Buffett is probably the market’s most famous and influential investor, the reports evidently had sway in terms of investor sentiments – which are also steered currently by wider economic concerns and fears of a recession.

Elon Musk, meanwhile, commented that Warren Buffett might be expecting a market correction, implying a cautious stance toward the current economic climate.

Berkshire Hathaway retains a holding in Apple worth around $84.2 billion.

Buffett’s Apple revelation came in Berkshire's second quarter report which also saw the investment group’s profits rise 15% to $11.6 billion, while net income fell 15% to $30.34 billion.

It also disclosed that the firm continues to sell off other significant holdings, including more than $3.8 billion in Bank of America shares since mid-July.

Market commentary noted that Buffett selling some of his Apple shares made sense due to the favourable federal tax rate on the investment gains.

In New York, Apple shares lost around $9.00 falling 4% to trade at $210.98.