Warren Buffett 'Doesn't Understand Technology' Says Tesla Investor Ross Gerber Lamenting Sale Apple Share Sale Ahead Of 'AI Revolution'

Ross Gerber, the CEO of Gerber Kawasaki Wealth and Tesla Inc. investor, recently criticized Warren Buffett for his lack of understanding of technology, which he believes led to the sale of Apple Inc. AAPL shares before the AI revolution.

What Happened: On Saturday, Gerber took to X to express his views on Buffett’s decision to sell Apple shares, which he believes was a mistake for long-term investors. This statement was made shortly after Berkshire Hathaway BRK BRK, Buffett’s firm, significantly reduced its stake in Apple.

“Warren Buffet doesn’t understand technology, thats for sure. Selling Apple before the AI revolution is an error for long term investors,” Gerber wrote

See Also: Elon Musk Says Warren Buffett Is ‘Clearly Expecting A Correction’ After Berkshire Sold Nearly Half Of Its Apple Stock

Why It Matters: The criticism from Gerber comes just days after Buffett significantly reduced Berkshire Hathaway’s stake in Apple. According to a 10-Q report, the value of Berkshire’s Apple holdings dropped by nearly 38% from the first to the second quarter of 2024. This reduction has led to a loss of substantial dividend income for Berkshire.

Additionally, both Bill Gross and Buffett have hinted at a bearish outlook for the stock market, advising investors to consider selling during recoveries rather than buying dips.

This sentiment was echoed by Elon Musk, who suggested that Buffett’s actions indicate an expectation of a correction. Musk wrote, “He is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills.”

Furthermore, Berkshire Hathaway has been actively selling other significant holdings, including shares of Bank of America Corp BAC, amounting to $3.8 billion since mid-July. This series of sales suggests a strategic shift in Buffett’s investment approach, focusing on liquidity and potential market downturns.

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Image via MidJourney

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote