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I think you may be misunderstanding how stocks work. This isn't taking money/cash out of Apple -- Apple's cash is entirely unaffected. This is just Berkshire
by crazygringo 2y ago
I think you may be misunderstanding how stocks work.
This isn't taking money/cash out of Apple -- Apple's cash is entirely unaffected.
This is just Berkshire selling some of their shares of Apple to other people who now own those same shares insteads. All the money Berkshire gets in these sales comes from the buyers, not from Apple.
- spiderice 2y agoBerkshire flooding the market with Apple shares causes those shares to drop in value. GP is saying that Apple is more insulated from that sort of price drop because they’re sitting on a mountain of cash. A smaller company (think Peloton) is much more affected by their stock price dropping because they use the value of the stock to raise capital that they need. GP understands what they’re saying.
- dagmx 2y agoBerkshire already sold these stocks though. They’ve been selling for the past several months. It’s not in their best interest to do a sudden dilution for exactly the reason you mentioned. The current stock price is after the sales, but before the news of the sales. Any reaction now would be a reaction to the news and not the effects of the sale itself.