Prediction: Warren Buffett Will Start Buying More Apple Stock This Quarter

Warren Buffett has made no secret about how much he likes Apple (NASDAQ: AAPL), once referring to it as the best business he knows of. It's routinely the top holding in the portfolio of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Buffett's conglomerate.

But for multiple quarters last year, Berkshire had been trimming its position in the iPhone maker, leading some investors to wonder if the billionaire investor is no longer as optimistic about the tech company.

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Not only do I think that's not true, here's why I also believe he probably added to his position amid the market's recent sell-off.

Why Buffett may have been trimming his position in Apple to begin with

In November 2024, investors noticed that he reduced his stake in the tech company for a fourth consecutive quarter. At that point, he had sold more than 615 million shares over the past year. While his reasons are usually not known for why he buys or sells a stock each time, one possible reason could be to do with taxes.

In the past, he has voiced concern that the tax rate on capital gains might rise. And presidential candidate Kamala Harris did suggest increasing it.

Buffett, in looking out for Berkshire shareholders, may have wanted to sell off a big chunk of Apple stock before that happened, to avoid a hefty tax bill for the company given the shares' mammoth rise in value over the years. And rather that spooking the markets with one large stock sale, spreading it out over multiple quarters might have made more sense.

But whether it's to do with taxes or Apple's rising valuation, there would have been no reason to believe that he thought the business was in trouble. It consistently generates more than $90 billion in profit each year, and its revenue over the trailing 12 months has totaled nearly $400 billion. Its services business continues to grow, and although investors today may be worried about tariffs, at the time of the stock sales there would have been no glaring reason for worry.

Why now may be an opportune time for Buffett to load up on Apple stock

During the current quarter, which began in April, I would expect to see a big purchase from Berkshire, adding to its position in Apple. Under President Donald Trump, capital gains taxes might not increase, and it's possible he could even decrease them.

Either way, the risk is considerably much lower under the current administration, which may alleviate any concerns Buffett had about a rising tax rate, at least for the foreseeable future.

What is notable is that he stopped selling Apple stock in the fourth quarter of 2024 -- when the election took place and the risk of Harris raising capital gains taxes was gone. It may have just been a coincidence, but it's hard to ignore the timing.

Another incentive to buy the stock is Apple's crash after Trump's declaration of "Liberation Day" and the announcement of global tariffs. That caused investors to dump their shares on fears that tariffs would significantly raise costs for the tech company.

The stock would end up falling, and on April 8 it closed at $172.42 -- not far from its 52-week low of $164.08. For Buffett, that may have created a buying opportunity too appealing to pass up. And I believe with the tax fears alleviated and Berkshire's position in Apple being significantly reduced, it would have made it easy to justify adding to its stake in the consumer tech company at some point this month.

While the tariff risk is still there, for a long-term investor such as Buffett, I don't believe it would have necessarily dissuaded him from buying the stock.

Is Apple stock a good buy right now?

If you're a long-term investor, you'll want to consider buying and holding Apple for not just years but decades. Tariffs could cause problems for its operations in the short run but if you're investing for the long haul, it may not matter all that much in the end.

The company's fundamentals remain strong, and with an excellent brand behind it, Apple is one of the safest and best growth stocks you can hold in your portfolio today.

Should you invest $1,000 in Apple right now?

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.