Buffett's retreat from Apple: A reason to panic or a thoughtful move?

For some, Berkshire Hathaway's reduced stake in Apple Inc. may signal a loss of confidence in the iPhone maker's growth story. But many on Wall Street are urging investors not to be swayed and to remain calm. There are reasons for the move, which don't necessarily indicate a lack of confidence in Apple.

Buffett's decision

The Warren Buffett-led conglomerate announced that it sold nearly half of its stake in Apple to $AAPLin the second quarter . The move reduced the value of its stake to about $84 billion from the previous $140 billion at the end of March. The sale came amid a sharp rise in Apple shares, which gained 23% during the period and pushed the S&P 500 index to new records.

Since 2016, when Warren Buffett first announced his stake in Apple, the company's stock has risen nearly 900%, giving Berkshire billions of dollars in unrealized gains. "Reducing Buffett's stake in Apple is just a matter of risk management," said Joe Gilbert, senior portfolio manager at Integrity Asset…