This week isn’t off to a good start for Apple (NASDAQ:AAPL). Indeed, the tech sector titan is down 4% today on institutional investor news. Specifically, Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) revealed that it has trimmed its AAPL stock position, causing shares of AAPL stock to fall.

Berkshire hasn’t cashed out of Apple entirely, as it still maintains a sizable position in the company. However, the fact that Buffett’s company has reduced its Apple holdings has been enough to drive shares down on a day when negative momentum is already pushing many stocks down. Now this update from the “Oracle of Omaha” may cause other investors to think about selling AAPL. As CNBC reports:

“Buffett had already sold 13% of his Apple stake in the first quarter and he indicated previously that it was a tax-saving move as he expected the U.S. government to raise the rate to fund a burgeoning fiscal deficit. However, the magnitude of the second-quarter sale could mean tax was not the only motivating factor.”

Things seem to be grim for the entire tech sector right now, including members of the Magnificent Seven. But that doesn’t mean investors should panic, even as AAPL stock and its peers trend downward. Let’s take a closer look.

What to Know About Buffett’s AAPL Stock Decision

• Berkshire Hathaway revealed the recent change in its AAPL stock position in its second-quarter earnings report.
• The company halved its stake from $174.3 billion to $84.2 billion. That means Berkshire still owns roughly 400 million shares as of June 30.
• This marks the third consecutive quarter in which Berkshire has trimmed its Apple position. However, AAPL stock remains the firm’s top holding.
• AAPL stock fell roughly 9% in pre-market trading today but has since recovered somewhat. As of this writing, shares are down by about 4%.
• Since Berkshire Hathaway first purchased Apple stock in 2016, Buffett has praised the company and credited it with helping drive value for his firm.
• Apple isn’t the only stock that Buffett has sold this summer. Berkshire recently trimmed its stake in Bank of America (NYSE:BAC), offloading $3.8 billion worth of shares.
• Despite Buffett cutting back, Apple recently reported impressive Q3 earnings, with steady growth in both revenue and EPS. Revenue from services reached a “new all-time high.”

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.