Apple (AAPL) which is among the world’s most widely held stocks dropped by 10% in its darkest day in six years. The former king of the stock market fell to the fourth-biggest public company behind Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOGL).This resulted in billionaires such as Warren Buffet losing upwards of $4 billion.
Buffett’s Berkshire Hathaway (BRKB) owns about 252.5 million shares of Apple making Berkshire the company’s second-largest investor. The position makes up 25.7% of Berkshire’s total portfolio and is by far Buffett’s largest holding.
The plunge came after Apple warned it will miss its quarterly sales forecast because of weakening growth and trade tensions in China.The news sent shudders through global markets resulting in the Nasdaq plunging by 3%.Trade tensions between the US and China have taken an increasing toll on companies in both nations.
Beyond Apple investors were also rattled by the biggest one-month decline in US factory activity since the Great Recession. The closely-watched ISM manufacturing index tumbled to a two-year low providing further evidence of slowing growth and pain from the US-China trade war. Apple’s trouble navigating China backs fears that the slowdown in the world’s No. 2 economy is already hurting profits for multinational companies.