Berkshire Hathaway More Than Doubled its Stake in Apple in January

In an interview with CNBC today, billionaire investor Warren Buffett revealed that his holding company Berkshire Hathaway held around 133 million shares in Apple prior to the company's record-breaking earnings results on January 31.


Berkshire Hathaway disclosed that it held 57.3 million shares in Apple as of December 31, 2016, so it more than doubled its stake in the iPhone maker in January. The holding, which reflects about 2.5% of Apple's outstanding shares, is worth over $17 billion if the shares are still held today.

Berkshire Hathaway disclosed a nearly $1 billion stake in Apple last May, which led the iPhone maker's stock to soar 9% once the investment became public knowledge. Apple stock has been on the rise since then, closing at an all-time high of $137.11 last week just nine months after setting a 52-week low of $89.47 in May 2016.



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32 months ago
The holding, which reflects about 2.5% of Apple's outstanding shares

this is absolutely bonkers: AAPL is now Buffett's second holding after Coca-Cola. Excellent news for the stock.

Buffett also praised Tim Cook, and rightly so. 2017 will be an amazing year for Apple and AAPL.
Rating: 6 Votes
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32 months ago

I took CNBC guest's words at face value. If that's the case, then wow.


Understood. Berkshire has held 400 million shares (split-adjusted) of KO for a long time. It's currently trading at less than $42, so that's less than $17 billion worth of Coca-Cola. If Berkshire now holds 133 million shares of AAPL (which is what Mr. Buffett indicated this morning), at around $137 that's more than $18 billion worth.
[doublepost=1488208016][/doublepost]To add a little more to what Mr. Buffett said about Apple this morning...

He indicated that Berkshire wasn't currently buying AAPL, that it hadn't bought AAPL since the earnings report. He also indicated that it was at a different price now than he would buy it at.

Also, for those that have suggested it wasn't Mr. Buffett deciding to buy AAPL: We got considerable clarity on that front this morning. Mr. Buffett said that one of those other guys (Todd Combs or Ted Weschler, he wouldn't say which one) had bought 10 million shares of AAPL and Mr. Buffett has now bought 123 million shares of AAPL. That's Mr. Buffett's own characterization of the situation.

Perhaps the funniest thing Mr. Buffett had to say came in response to Becky Quick asking which company Mr. Buffett would bet on going to a $1 Trillion market cap first - Berkshire or Apple. Mr. Buffett said Apple and then proceeded to jokingly say (I'm paraphrasing a bit)... If Tim wants to swap straight up, I've got an 800 number for him. In other words, he'd swap Berkshire Hathaway straight up for Apple if he had that option.
Rating: 4 Votes
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32 months ago

I wish I was rich enough to make money off other people's successes.

Warren Buffett started in the same fashion as you: with nothing.
Rating: 3 Votes
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32 months ago
The Oracle of Omaha has spoken.
Rating: 2 Votes
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32 months ago
I wish I was rich enough to make money off other people's successes.
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32 months ago
AAPL is trading like old times again and is about to shoot up into the 140s.
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32 months ago

Can you explain further what you mean between Buffett and luck?


Gosh, you'd only have to ask him. One of Buffett's more admirable traits is the rare personal humility that allows him to admit that luck was a big part of his success.
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32 months ago

And that ladies and gents is how you short

Over multiple decades, shorting anything in BRK hasn't been a particularly good strategy. Few managers actually assemble a long term winning track record as he has.
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32 months ago

Warren Buffett started in the same fashion as you: with nothing.


Warren Buffet's dad was was a US Congressman in the late 1940s. I doubt that Warren started with "nothing". His parents definitely weren't billionaires and probably weren't millionaires but they were upper middle class. Warren started his invest company by selling (initially) to family and friends and I'm sure he had the funds to buy most any stock he thought was a good buy.

I don't want to downplay his accomplishments but this was more a middle class to riches than a rag to riches story.

And yes, he made more money than I have by the time he was my current age.
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32 months ago

But yet, he started with beyond something else besides "Nothing." He started with will power and a forward thinking Attitude. Anyone can start with nothing, it's what you make of the situation you start with.

Yes, a concept lost on many folks here at MacRumors and other sites. I'm not convinced that pointing this out in an anonymous Apple rumors Q&A forum is going to be the moment of investment enlightenment for anyone.

It is unwise to trust investment advice from the Internet.
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Can you explain further what you mean between Buffett and luck?

Buffett attributes his success to two lucky strikes:

https://qz.com/898294/hbos-warren-buffett-documentary-airing-at-10pm-jan-30-examines-the-billionaires-investing-genius/
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