In case you hadn’t seen the biggest revelation from Berkshire Hathaway’s latest quarterly filings:
Source: CNBC
Wall Street’s expectations were that the firm would dump around 100 million Apple (AAPL) shares. It ended up selling 400 million.
That’s impressive – nearly $88 billion dollars moved around, and nobody sniffed it out beforehand.
In a less liquid stock, if a large seller shows up, you’ll know about it thanks to the abnormal volume and the bid getting taken out of the stock.
The stock was averaging 50 million shares per day, and they managed to dump eight days’ worth of stock over 65 trading days.
I don’t know how they did it. Probably a combination of stock and derivatives, and working with the company for when their buyback program would be active.
You may think this is a massive sell signal for AAPL… but that isn’t the case. Having a large institutional sale like that doesn’t give us enough data to make a decision.
And even if you did, the news is coming out well after they’ve pared down their position. Heck, Berkshire may start buying if AAPL drops hard on news of them selling.
It’s how the game is played on Wall Street.
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