Apple’s iPhone 16 has arrived, and notable billionaires have been making some moves in the stock.
It’s been less than week since Apple‘s (AAPL 0.12%) iPhone 16 hit the shelves and opinions about the new device are already quite mixed.
Dan Ives of Wedbush Securities believes demand for the new iPhone will create a “supercycle” event for Apple, leading to some much-needed acceleration across the company’s revenue base. Meanwhile, other pundits suggest that even though the iPhone 16 comes with some impressive specs, demand forecasts may be exaggerated.
How have billionaire investors Warren Buffett, David Shaw, and Steven Cohen been investing in Apple as of late? Let’s explore some moves from Wall Street’s most sophisticated personalities and assess if Apple is a good opportunity for you right now.
1. Warren Buffett
Warren Buffett has led investment management firm Berkshire Hathaway since the mid-1960s. Buffett’s investment philosophies have helped turn Berkshire into the world’s largest publicly traded financial services firm — currently worth about $980 billion.
Yet despite its decades-long track record of success, Berkshire’s high-profile investment in Apple didn’t enter the picture until 2016. Let’s examine some recent activity from Berkshire and its position in Apple.
According to its most recent 13F filing, Berkshire reduced its stake in Apple by nearly half during the second quarter — offloading almost 400 million shares. This move followed a sizable sale of Apple stock from earlier this year, during the first quarter.
Considering both the iPhone 16 launch and Apple’s moves regarding new artificial intelligence (AI) services have been at the center of the bull thesis for some time, why would Buffett trim his stake with both of these catalysts looming on the horizon?
I see a couple of drivers that likely influenced the decision. First, Buffett is notorious for investing in blue chip — almost mundane — companies. Some of his prominent positions include the likes of Coca-Cola and Bank of America. Investing in technology businesses such as Apple is more of an anomaly for Buffett.
Right now, AI is the primary catalyst fueling the technology sector at large. In my opinion, Buffett might not be as compelled by the prospects of AI as other investors. Hence, trimming his Apple position and reinvesting the profits into safer vehicles such as Treasury bills is tough to argue with.
Moreover, even after reducing his Apple stake significantly, the company still represents the biggest position in Berkshire’s portfolio. This means that if the iPhone 16 and new AI-powered services ignite some newfound growth, Berkshire still stands to benefit given its remaining exposure to Apple stock.
Image source: Getty Images.
2. David Shaw
David Shaw is the founder of hedge fund D. E. Shaw. Last quarter, the fund sold 4.8 million shares of Apple — reducing its stake by roughly 33%.
Similar to Buffett, selling Apple stock amid some important product launches may be a head-scratcher on the surface. But a closer look at D. E. Shaw’s entire 13F filing could shed some light into its portfolio management strategy.
In addition to Apple, D. E. Shaw also reduced positions in other AI stocks including Microsoft, Nvidia, Meta Platforms, Tesla, Alphabet, and Amazon. Along with Apple, these megacap tech companies are collectively referred to as the “Magnificent Seven,” and are broadly seen as barometers on the overall health of the AI industry.
The chart below illustrates the return of the Magnificent Seven stocks from Jan. 1 through June 30. Although I cannot say for certain when D. E. Shaw sold stock during the second quarter, it’s fair to say that the fund has benefited from overall bullish movements among the Magnificent Seven stocks (with the exception of Tesla through this time period).
AAPL data by YCharts
With some calling AI a bubble, changes to monetary policy that were not yet known during the second quarter, and broader economic concerns around inflation that directly impact demand for pricey items such as an iPhone, who can blame D. E. Shaw for taking some money off the table after outsize run-ups in big tech stocks?
This idea holds particular importance with Apple. The company’s growth has been inconsistent for over a year now, and yet the stock gained 9% during the first half of the year. Taking some gains in a company that isn’t growing and whose next catalysts aren’t guaranteed seems like a prudent thing to do.
Like Buffett, Shaw still remains exposed to Apple and is positioned to reap the rewards of the iPhone 16, as well as the company’s long-awaited foray into AI.
3. Steven Cohen
Last on my list is Steven Cohen, the founder of Point72 Asset Management. During the second quarter the fund initiated a position in Apple, scooping up 1.6 million shares.
In early June Apple announced a strategic partnership with ChatGPT maker OpenAI. The deal was well received, as up until that point Apple’s AI vision was looking pretty mysterious — unlike many of its peers.
Furthermore, it’s possible that Point72 was more optimistic about the macroeconomy and was optimistic about the possibility of rate cuts from the Federal Reserve. The combination of a deal with OpenAI, the anticipation of the iPhone 16 launch, and an improving economic picture may have compelled Cohen’s Point72 enough to buy into Apple’s next growth narrative.
I think all of these factors could have influenced Point72’s purchase of Apple stock, and I would not be surprised if Cohen’s fund keeps its allocation just as D. E. Shaw and Buffett’s Berkshire Hathaway did.
The bottom line
The big idea here is that each of the investors I’ve explored still owns Apple stock, despite various levels of buying and selling in the stock. I think investors who are looking for exposure to AI could see Apple as a unique opportunity right now.
Although many of its big tech counterparts have already made waves in the AI realm, Apple’s chapter in the story appears to just be starting, making it a particularly interesting stock to buy at the moment.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
