Warren Buffett's Apple Exit

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Born Buffett made news a few days ago when he sold a lot of his apples. And Apple is a company that has been struggling. Well, I mean it's docking relative, but you know, I've had some issues this year with lawsuits in Europe and America and.

Re rocking the same phone for seventeen years.

So now that warrant has kind of started to abandon the ship. Does this mean that two Tech two Index needs to kick Apple out?

Oh no, not yet.

But what I will say, number one, you have to factor in the price of which he got into Apple. So if you know that, please put in chat my favorite investor of the year. So the return has been incredible, maybe time to assw it. With the death of Charlie, there was Charlie's idea at Warrens, so that's another reason he kind of got that off the table. Now him selling half of the position.

Do I agree with it? One thousand percent? And here's why this is called fundamental analysis.

The weakness is an Apple is they even though they've spent the most on AI startups, they have not had much innovation in the last five years. To everybody at HQ, I love you still shot to Tim Cook, Lauren Jobs, Steve Jobs. Cool, but can you tell me five things that you've seen out of Apple the last five years that you absolutely love?

Five deb And if it takes that long.

To give five reasons while something is great, it ain't there. Do I think innovation will come in the next two or three years. But I've been saying they need to go back and get Johnny Ives and bring it back into the consultant fold. You need another product. The AirPods have done well great. It was an acquisition from doctor Dre and Jimmy Ivean. You missed out on open Ai, you missed out on the crypto wallet. The car thing

So when you say when you say you don't see any prospects of it going higher, and that would mean that it has limited upside.

Right, it doesn't have the same growth rate that it does over the last maybe six years. But also profit margins still twenty five percent and still one of the top three marketing cap companies of all time.

Yeah, I was gonna say that the profit margins are still high.

Yep.

It's interesting the timing of it.

I think a month ago we were talking about him shaving thirteen percent, which was a large chunk, and then we hear that he shaved up half in this quarter. I'm assuming he did it around when Apple hit this fifty two week two thirty four, which.

Makes a lot of sense. Yes, But when the news came out early.

Saturday morning, I text, and I text that in the chat, and the next thing I said is he knows something.

He knows, yes, and he's convinced the whole world. He doesn't know how to trade. If you look at the exits when he holds on the ship for five to ten years, it's usually like four or five dollars from the all time high.

Yeah, we need to get him in Nancy Pelosi in a chat and see what we can do. But yeah, I mean half is a lot, But what does that mean in terms of cash? That means two hundred and twenty seven billion.

Most of all time and a bunch of Treasury.

Bills just sitting on the sideline.

And so if you see a market pullback like we've seen obviously today, and if that continues over the rest of this quarter, there's gonna be plenty of opportunities for him to buy into new positions.

In fact, he might go back and buy some more Apple positions. We don't know. He's still a large shareholder of the company. Well first sure Halfway is a large shareholder of the company.

And so the timing of it, it seems like when he makes these moves, you see the trickle effect.

It was no coincidence. When he went to.

Taiwan to talk, we saw the trickle effect happen. But what Taiwan semiconducted, I don't know. You said abandoned, which is a strong word.

I don't. I don't.

I don't know if where if he abandons it like you said that, there's still yeah.

No, here's slowly trim and he's Trim's.

If I was him, I will push Intel down to seven and buy the whole fucking company.

Just buy it, all right.

I can't get Taiwan. They ran up in video. He's a tech blaggered, but entries are innovative. I will find a way to push that ship and what better face in a global route to pick up into other more.

Buffet or we should just watch where his focus have been over the past six months.

What industry is, What sectors?

We spoke about a few of them, like where where have the sectors that broke? I know we talk about they talk about rotations all the time and it's like techotated.

Yeah, okay, but where has his focus gone? Where has the money move? Right?

Like we always let people follow the money again, it leaves traces. Where has the money gone? Where has his focus gone? We talked about oil plenty of times on here, but that would be interesting to watch over the next few months.

With that cash pile of two.

I mean two hundred and twenty seven billions, is just where is that going?

Like where the remnants of it?

Okay, I want to.

Be a record if it goes to nine bucks that he's gonna put an offering for what Intel and the company's ran to ship right now? Well, the government, hos is gonna keep it the last ten years and you're the laggard in the space.

Yeah, government contract's gonna keep it alive.

So okay.

Bitcoin Bitcoin dipped under fifty thousand today, briefly came back rebounded, but it's still down tremendously from his high of seventy three thousand, twenty thousand dollars lower than that, but still above the fifty two weeks low twenty fourth thou So, what is what's the deal with bitcoin?

It's going down with everything else I kept telling you, Larry Finking is the halfway of the bitcoin and crypto market space. So it'll move when Blackrock wanted to move. If you got it at forty nine thousands some change, you did great. If you can get it back at fifty two, buy and go to the beach, same thing I did with jet Ski.

If you believe in the assets long term, just hold on to it.

But the truth is the entire economic system needs to be readjusted. And I said it on a stock clup call yesterday. If a quarter of one percent interest rate change is what's going to be the band aid to save the market, where before we even get started, if a quarter basis point is the thing that's like keeping everything glued together, we have to have a reset anyway. So Bitcoin is just being drug down as a result, like every like the Nike and that they're right in chat,

Something is coming. Is a recession coming.

I've been saying this the last two year.

Yes, even was on Brukast Club, I predicted twenty four to twenty five we would get into recession.

So we're going so all right, So the recession is coming this year, next year.

I think if Queen Kamama gets in, you can damn it guarantee February we hit.

We're recession.

We're hit a recession.

What about your idea of the soft landing, because it's felt up until his point, up until mid July, I mean the nastac was at all time high, be all time high, doubt, all time high. I think July temper hit that mark. Valuations through the roof, multiples through the roof that has pulled back. Now is the theory of soft landing. Are you still opposed to it?

We want truth to truth. Uh truth, soft landing was some bullshit from the very beginner. That's another phrase for market manipulation. So if you got in and you priced it in great, okay. I asked both of you take me out of the equation if you never met me. Off the top of your head, if your entire life savings had to go into four companies, what four would you pick?

After it takes that long, I got in trouble and go ahead.

I got. I mean it's for but it's probably obvious.

For like Apple, Microsoft.

I've taken video in Amazon.

Now rashad as an advisor.

If I told you eight years ago nobody said bonds, you would say I was a scam artist, right, A.

Fucking bond market collapse and the yen collapsed and no, Everyone's like, no, it's fine.

The junis riv Ai is going to bring the market what okay? Okay, I knew what everybody thought. I was crazy for one oh seven. I'm like, man, if I tell you why this shit can really go and how much of the rest of the market has support, it's scary. I think a lot of black people are already in recession anyway. A lot of men sized businesses are in like recession anyway.

But I want to ask, how would this really affect because yeah, I mean the consumer sentiment is already recession, so a recession. How how bad would it get if technically people are already in recession?

I mean, if I think if they only show the truth and tell how even with the jobs report, I'm like, I don't think that's the real because if we take the government jobs out of it, how many jobs are we.

Net positive.

Destiny?

I want to see. Now that's the part that's really tough.

Now, if you take out the jobs to pay twenty five hours twenty five dollars per hour unless and government jobs, like what is the net? If you look at Silicon Valley, they've been on a freeze. We all know people that meta like they weren't hiring, like how they were two years ago and they were slashing fucking jobs like crazy to you, like, this is real and I'm not trying to be doom and gloom, but as an investor, you

But aren't I mean they've tried their best. If anything, they've tried their best to make this as off as possible. Pause when you think about it, and this is the unfortunate part of interest rates, right, Like people are going to lose jobs, right, we have to have people lose jobs in order to bring that rate down.

Were they over hire during at the beginning of the pandemic twenty were at zero?

Right?

So the non the non farm jobs have come down, right, that would be a positive sign, right, right, Inflation has come down. So like these these things, whether they've been manufactured or not. I mean, we'd have to be like an expert economist to actually follow those numbers like stridently. But isn't that Like this is part of the hardship that comes with if we want a half percent or a quarter percent in September, like, these things have to happen.

No, very true.

But also when they hire at the rate of three x because the interest rate was zero. When when does venture capital and angel investors get the blame for causing this mass introduction of all these jobs that were not needed.

Private equity is.

Going through a whole shit show that no one will wants to talk about. And we gotta tell the truth. They over hired. And if the entire American economy is tied to janitor of AI, that can make a dog's ear bigger.

We are fucked.

Shady.

What three companies right now?

If your entire life, savings and brain was on the line, that you put your money into Microsoft and investment, invest up and I will play two more.

What's up?

We're talking today? But out of that, notice all the companies we're not mentioning.

We I mean, we gave thirty the other day.

I do want to say, I'm glad you said that, because I want to get your perspective.

You gotta give us two.

I think it was a rhetorical I think it was rhetorical. Well, I thought it was not literal.

That you can't give us two.

I gave you Microsoft already. What's up?

You got to I mean, of course you're gonna go Microsoft off.

That's the number one draft pick.

Stacy.

Microsoft is our bond market for shot up. I'll told you in two thousand and nine, Microsoft will be our bond market. You would say I was crazy, right, No single equity should be the most stable thing in our market.

That's fair.

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