Recently, major companies have begun to release their second-quarter financial reports, and various fund companies have also started to publish their holding data. Compared to some unexpectedly 'surprising' or exceptionally bright financial reports and data, I find it more interesting to hear some insightful comments from well-known investors.
For example, in the latest holdings disclosed by Berkshire Hathaway, they further reduced their stake in Apple and increased their position in a previously lesser-known company, 'UnitedHealth Group (UNH)'.
Many financial articles have used this to question whether Apple is hiding some risks. Did Buffett see some underlying problems with Apple?
In short, there are various speculations about whether there are issues with Apple's fundamentals, which is why Buffett would sell.
Seeing these articles, my first feeling was that something was off; I thought their speculations were a bit absurd.
In fact, if we take a closer look at Buffett's holdings, we will find that Apple is still one of his largest positions. If Buffett believed that there were fundamental issues with Apple, he would liquidate his position or at least sell a significant amount, not just reduce it.
In fact, this is not the first time Buffett has reduced his holdings in Apple; there was a reduction last year.
At that time, Duan Yongping's evaluation of Buffett's reduction of holdings was very interesting and quite prescient.
In a review on August 4 of last year, he wrote:
"I can understand why old Buffett sold Apple; after all, this is not a field he is very comfortable in, and it has become so high due to reasons he is less familiar with, plus he might have many alternatives in mind, or simply feels that the current stock market is too high and wants to keep some cash to wait for opportunities. If Apple's stock price remains so strong, I wouldn't be an exception after Buffett sells out."
To summarize, Duan Yongping believes that Buffett's reason for reducing his holdings in Apple boils down to a few points:
- The price is too high.
- If Apple's price continues to be strong, Buffett will continue to reduce his holdings.
- Selling to buy other alternative companies or simply to hold cash for opportunities.
Looking back at Duan Yongping's comments now, it feels like he and Buffett share a connection similar to that of Yu Boya and Zhong Ziqi—only soulmates can understand and comprehend each other's actions and thoughts.
I particularly resonate with Duan Yongping's mention that Apple is not a field Buffett is very comfortable in, which is why he sold.
Because it reminded me of the feeling I had before I completely liquidated my Tesla position—always feeling uneasy, sensing something was off, that there were problems.
It's not that Tesla is a bad stock, but I felt that at least at that time, Tesla was not a company that made me feel very comfortable. Rather than holding onto such a company, it would be better to completely let go and find a target that is more suitable for me and more comfortable to hold.
Since last year, I have formed a new habit: every quarter when major companies release their financial reports and major institutions publish their positions, I intentionally look at the financial media's commentary on these reports and positions—not to follow them for various operations, but to use these examples to exercise my understanding and judgment of their operations, and then compare my judgments with comments from some well-known investors to see the differences in opinions and the reasons for those differences.
I find this a great opportunity to improve my understanding and cognition.
In fact, the above comments by Duan Yongping on Buffett's operations have all been recorded in the transcripts of Buffett's shareholder meetings, and I have read them multiple times myself.
However, reading does not necessarily mean one can truly understand, much less form one's own opinions and cognition. To truly make them one's own, one needs to practice and verify them repeatedly in practice.
And these financial reports and reviews are the best practical training.