There's a reason why big-time investors make their fortunes: it's because they look to maximize their dollar invested at every turn. Investors like Warren Buffet and Ron Baron, two of the world's most well-to-do investors, have trimmed their stocks in Apple and Tesla.
Billionaire investors know how to handle a volatile stock market. Experienced investors like Warren Buffet, Ron Baron, and Steve Cohen make logical decisions when it comes to their money. They are always looking ahead, rather than back, and that is why they have so much to gain. One hard pill to swallow for the average investor is coming to terms with learning that every day, the market price is reset, no matter at which price you bought it at. It's why heavy-hitting investors like Buffet and Baron have trimmed their stocks in Apple and Tesla.
While traditional fossil fuel companies like Exxon Mobil continue to soar off lows from the pandemic, Tesla shares have plummeted. As reported by CNBC, the gap between energy stocks and tech stocks is the widest it has been since 2002. Last week, the Nasdaq erased the tech-heavy index’s gains for the year, marking it down to 1.7 percent. Baron believes that Tesla is headed to $2,000, however, he sold it 1.8 million shares. Warren Buffet has a love for Apple, yet he trimmed his stake in the fourth quarter.
It's crucial to be reminded of how these big investors feel about their biggest winners and where the average investor falls flat. Apple and Tesla have seen some significant pressure this year and it's why Buffet and Baron have trimmed their investments. Stock rotations will happen and are not always sensible-- where trillion-dollar stocks made huge capital last year, things will shift for the two companies.
Buffet's company Berkshire Hathaway owns a famous portfolio worth over $281 billion. Five years ago, the stockholder added Apple to his portfolio and just days ago, he sold 57 million shares of his Apple stock. Buffet's selling off his Apple shares has other investors stretching their heads with worry (and fear). According to The Motley Fool, Berkshire still owns 887 million shares of Apple stock, which today are worth more than $117 billion, so investors shouldn't feel the need to worry.
Billionaire Ron Baron has been a long-time Tesla investor who recently sold a painful million of his shares because they were becoming too large a percentage of some portfolios, as reported by CNBC. As of February 28, Baron Capital held more than 6.1 million shares in Tesla; 2 million of those shares were sold at $400 to $900 a share.
“We’re looking for a lot more,” Baron said. “I think in 10 years our target is $2,000 a share.”
Sources: The Motley Fool, CNBC