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Berkshire 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 bec
by spiderice 2y ago
Berkshire 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.