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Everyone here points to the high P/E ratio as the reason to sell. That is simply the reason to sell NOW. The reason it's being sold is he is obviously less bull

Everyone here points to the high P/E ratio as the reason to sell. That is simply the reason to sell NOW. The reason it's being sold is he is obviously less bullish on the company. It doesn't take much to understand why. The thing that led to Apple's growth as a company and a stock is something called the iPhone. The thing that drove sales of the iPhone was the fact they were not just getting better, they were getting _different_. More cameras. Different kinds of sensors. Now they are just getting better. And less better each generation. Benedict Evans would call this the top of the "S" curve. It matters when selling someone a new phone in a new box is the main thing that generates your profits. You can be a great company with great leadership and great products. You can't defy the laws of the "S" curve and market saturation. It doesn't matter how good you are. This is why Buffett and Co. are unloading. I wouldn't be surprised if it all gets sold by the end of the year. EDIT: I called this sale two weeks ago in a tweet: https://x.com/jkingyens/status/1813214574436303114 https://x.com/jkingyens/status/1813214574436303114

jti107 2y ago
its been pretty much the same iphone for last 5 years...the only new innovation have been satellite texting messages, 120 hz screens and improved camera/cpu. yet Apple has continued to do well...i think your example of S curve and market saturation is fine but Apple has an entire ecosystem and is catering to luxury and high end market so the same rules dont apply (see LVMH as an example in luxury goods). they sell phones, tablets, computers, high end audio, watches, services and all these things just work well together. no other company on the planet comes close...other than maybe google.
- enos_feedler 2y ago
  While that is true in hindsight, we had different emotions when the phones 3 and 4 years ago actually came out. We were on autopilot because of all the innovation that came before it. We overshoot and then come back to reality. Also, I actually think Covid also masked a lot of deceleration due to the S curve topping out because it pulled in a lot of future demand. There are multiple reasons why the market demand is not going to line up perfectly with the actual products that launch each year.

jti107 2y ago

its been pretty much the same iphone for last 5 years...the only new innovation have been satellite texting messages, 120 hz screens and improved camera/cpu. yet Apple has continued to do well...i think your example of S curve and market saturation is fine but Apple has an entire ecosystem and is catering to luxury and high end market so the same rules dont apply (see LVMH as an example in luxury goods). they sell phones, tablets, computers, high end audio, watches, services and all these things just work well together. no other company on the planet comes close...other than maybe google.

enos_feedler 2y ago
While that is true in hindsight, we had different emotions when the phones 3 and 4 years ago actually came out. We were on autopilot because of all the innovation that came before it. We overshoot and then come back to reality. Also, I actually think Covid also masked a lot of deceleration due to the S curve topping out because it pulled in a lot of future demand. There are multiple reasons why the market demand is not going to line up perfectly with the actual products that launch each year.