Berkshire Hathaway Nearly Quadrupled its Stake in Apple Stock Last Quarter

[Carnegie]

If I'm put in charge of Berkshire Hathaway, I will attempt to
purchase as many Apple stocks as possible. I will not stop
until I acquire at least 50.1% of Apple.

Or is that a very bad financial decision?

Well, without assessing whether it would be a bad financial decision...

Berkshire Hathaway only reports around $150 billion worth of equity ownership on its 13F. And right now 50% of Apple would be worth around $350 billion, more than the total shareholder equity (roughly its assets minus its liabilities) that Berkshire Hathaway reported as of this past September. So I think acquiring 50% of Apple would be a bit of a stretch for it.

 

[SarahKirschbaum]

Well, without assessing whether it would be a bad financial decision...

Berkshire Hathaway only reports around $150 billion worth of equity ownership on its 13F. And right now 50% of Apple would be worth around $350 billion, more than the total shareholder equity (roughly its assets minus its liabilities) that Berkshire Hathaway reported as of this past September. So I think acquiring 50% of Apple would be a bit of a stretch for it.

I'm sure BH has excellent lines of credit with any bank in the world....
[doublepost=1487118054][/doublepost]

"AMAZING"... or SCARY?

so does the POTUS!

 

[madrich]

Warren Buffett's holding company Berkshire Hathaway nearly quadrupled its stake in Apple stock to 57,359,652 shares last quarter, according to an SEC filing disclosed today. Its stake in Apple was worth nearly $6.7 billion as of December 31, and over $7.7 billion today if the shares are still held.

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 $135.02 today just nine months after setting a 52-week low of $89.47 in May 2016.

Apple and Berkshire Hathaway are the world's most and fourth-most valuable companies respectively based on their market capitalizations.

Article Link: Berkshire Hathaway Nearly Quadrupled its Stake in Apple Stock Last Quarter

[doublepost=1487118132][/doublepost]He knows something....................

 

[dazz87]

the rich get richer.....nothing new here.....

 

[Cineplex]

And yet, the MR bros are assuring us that the firm is somehow in trouble and Tim Cook must be fired.

Just start an hedge fund, guys!
[doublepost=1487112432][/doublepost]

You know very little about Buffett's modus operandi. He rarely "dumps", and holds basically forever his picks. That guy was Icahn.

He might have seen Icahn and said...hmmmmmm

 

[DotCom2]

"AMAZING"... or SCARY?

AMAZING in a SCARY way...WAY!

 

[62tele]

If only he could have influenced voters last year.

 

[Bart Kela]

It's the rare Apple Watch Billionaire Edition. Only available to the super wealthy.

You piqued my curiosity so I did a little Internet sleuthing and it turns out that he favors the Rolex Datejust, enough that he would snap up the parent company if it were for sale (it a private Swiss family foundation so it isn't). That appears to be the watch on his wrist (and apparently he has owned it for a while). Unsurprisingly, this is a characteristically sensible choice for a man of such enormous wealth.

He also apparently owns a white-gold Patek Philippe Calatrava.

He's owned the Rolex far longer than he's owned AAPL stock.

 

[DCJ001]

If I'm put in charge of Berkshire Hathaway, I will attempt to
purchase as many Apple stocks as possible. I will not stop
until I acquire at least 50.1% of Apple.

Or is that a very bad financial decision?

It is difficult for anyone to buy more shares of AAPL than Apple, Inc. has bought/will buy.

 

[preetb]

Buffett invests in consumer brand name companies that are mature and yet have growth. That underscores that Apple is no longer an innovative tech company. It doesn't have to be innovative anymore, it just has to maintain its growth and margins. Or am I being ironic?

 

[Zirel]

That doesn't look like an Apple Watch

Good point, it also looks like a fugly watch.

Tim could send him one of those gold AW's with the gold bracelet that only Apple has.

 

[nutriousmitten]

Do I get a MR story if I buy 5 shares and quintuple my investment?

And Mr. Buffet probably can now buy Margaritaville.

 

[Bubba Satori]

I look forward to Warren's next speech on income inequality in America.

 

[zzLZHzz]

Yes, and that's just the Apple Stock they have.
[doublepost=1487114106][/doublepost]
Microsoft bought Apple Shares back in the 90's to keep Apple afloat. They do sell Office:Mac too, as well as Visual Studio for Mac.

Plus, they're a good idea farm.

And they are supporting touch bar in the latest office for mac insider

 

[ksnell]

PUMP AND DUMP! PUMP AND DUMP! PUMP AND DUMP!

It's the oldest trick in the book. He knows Apple sucks, but realizes dumb people still think Apple is going to push something out of Timmy's "pipeline".

Not his style. He takes growth stocks with dividends and holds them over a long time.

He famously said to only invest in something you would be perfectly happy to hold if the market shut down for 10 years, and that ideally his favorite holding period for a stock is forever.

 

[wiz329]

And yet, the MR bros are assuring us that the firm is somehow in trouble and Tim Cook must be fired.

Just start an hedge fund, guys!
[doublepost=1487112432][/doublepost]

You know very little about Buffett's modus operandi. He rarely "dumps", and holds basically forever his picks. That guy was Icahn.

Where did they get the cash to quadruple their stake in Apple? Legitimately asking here. It seems that to make any major market "moves" or "bets", they'd have to unload something else before buying, no?

 

[Bart Kela]

Buffett dumped nearly his entire position in Walmart. It's worth pointing out that Buffett no longer is the sole decision maker of investing at Berkshire Hathaway. He has two investment deputies and they are the ones who likely bought AAPL, not Buffett.

Berkshire Hathaway often does not disclose its moves at the time of the transaction so it is possible that they divested themselves of something else that has yet to be uncovered.

It's not like Warren bought all those AAPL shares this morning.

 

[Cineplex]

Not his style. He takes growth stocks with dividends and holds them over a long time.

He famously said to only invest in something you would be perfectly happy to hold if the market shut down for 10 years, and that ideally his favorite holding period for a stock is forever.

He's in for a big shock then.

 

[Swift]

It's almost self fulfilling. Warren Buffett announces he thinks apple stock prices will go up. He invests lots of money, the price goes up.

If I announce that "company x" stock will go up and I invest in its stock, it seems to always go down.

He's pretty shrewd, and he's been at it a long time. Plus, he's a genius.
[doublepost=1487130484][/doublepost]

PUMP AND DUMP! PUMP AND DUMP! PUMP AND DUMP!

It's the oldest trick in the book. He knows Apple sucks, but realizes dumb people still think Apple is going to push something out of Timmy's "pipeline".

That's not what Buffet does.
[doublepost=1487130615][/doublepost]

Where did they get the cash to quadruple their stake in Apple? Legitimately asking here. It seems that to make any major market "moves" or "bets", they'd have to unload something else before buying, no?

Uh, I'm sure some of their holdings are liquid, or cash.

 

[Terrinb]

Yes, and that's just the Apple Stock they have.
[doublepost=1487114106][/doublepost]
Microsoft bought Apple Shares back in the 90's to keep Apple afloat. They do sell Office:Mac too, as well as Visual Studio for Mac.

Plus, they're a good idea farm.

Microsoft bought Apple stock as part of a settlement in a legal proceeding that Microsoft was going to lose regarding its blatant theft of QuickTime. It paid an undisclosed sum, bought some restricted no voting stock, and made Office for the Mac.

The deal gave Apple some needed cash, and let Apple focus on rebuilding instead of litigation.

The deal was very profitable for Microsoft, and worked out for Apple as well.

 

[groove-agent]

He's up to ... something.

 

[IJ Reilly]

It is difficult for anyone to buy more shares of AAPL than Apple, Inc. has bought/will buy.

Public companies can't own shares of themselves. Any shares they buy back are retired, essentially.

 

[BuddyTronic]

Surprising as Warren Buffett tends to avoid stocks in technology and healthcare companies. I suspect one of his underlings is pushing for it...

I do not think it is surprising at all, because I think AAPL is the safest stock investment you can make, and it is also undervalued. It should be a $200.00 stock - just like Carl Icahn said. Everything Carl Icahn said about AAPL 18 months or so ago was correct.

How far can AAPL go down? Liquid asset value is very high for AAPL - maybe something like $50+ per share - so if all business halted or failed, the shares would/should still be worth more than $50.00. That's your downside, and try to imagine what it would take for Apple's business for that to become a reality. Very unlikely.

P/E ratio - compare to others. It's ridiculous that AAPL had such a low P/E ratio (of like 11 or 13 for a long time), while all the others grouped with it have P/E's of 18. This alone should make anyone buy the stock!

Earnings per share - again - AAPL does very well. Every share pulls in something close to $9 per year earnings.

What is not to like about AAPL? Fear of not selling iPhone's? I mean really? "Stock Analysts" have been so negative about AAPL stock for years and years - and the stock has gone up 1000% all the while, and they STILL keep saying negative things about AAPL. It's a big joke, almost as stupid as some of the false propaganda we see daily on CNN - all slanted made up stories - they start off with some assumptions and lies and build on the lies with more misinformation over and over until there is nothing left but a very incorrect world view. The old joke around MacRumours is that Apple is "going broke" - with CNN their thing is "Russia did it" - or "Putin did it". It's the same sort of joke.

If you can see through the lies, you can profit.

Warren Buffet probably realized it and put his money down knowing that AAPL is the easiest and safest investment in the entire world - there may be other good opportunities, but Warren Buffet would probably do best if he liquidated the holdings of Berkshire Hathaway and put all his eggs in one basket - AAPL.

The idea of "Are you Diversified" is garbage - you only need to pick a winner. Easy to do with AAPL. Has been easy and still is easy.

 

[IJ Reilly]

How far can AAPL go down? Liquid asset value is very high for AAPL - maybe something like $50+ per share - so if all business halted or failed, the shares would/should still be worth more than $50.00. That's your downside, and try to imagine what it would take for Apple's business for that to become a reality. Very unlikely.

P/E ratio - compare to others. It's ridiculous that AAPL had such a low P/E ratio (of like 11 or 13 for a long time), while all the others grouped with it have P/E's of 18. This alone should make anyone buy the stock!

Not actually true.

Failed businesses burn through their cash in a hurry. Cash provides no value cushion at all to investors.

PE is not a magic number. It is meaningless compared to other businesses in the same sector and is meaningless if not compared to revenue and earnings growth. Apple's current growth rate does not justify a PE above the broader market, which is pretty much where it is now.

The idea of "Are you Diversified" is garbage - you only need to pick a winner. Easy to do with AAPL. Has been easy and still is easy.

Now, this is dangerous nonsense. Picking winners is extremely difficult, and more luck than skill, even for those who do it professionally. For the vast majority of investors, diversification is about the only thing they need to worry about. Trying to pick winners is the last thing they should be attempting.

 

[Wowereit]

What is not to like about AAPL? Fear of not selling iPhone's? I mean really? "Stock Analysts" have been so negative about AAPL stock for years and years

Apple has been undervalued for a long time now, but right now
Apple's iPhone business reached a plateau. We will have to see which direction it's going from now on. Major problem is that iPhone sales not only make up their majority of business, iPhone is a carrier for their other services and devices as well.

a) Stay on about the same level at least for a few years because Apple basically reached the maximum of people willing to get an iPhone?
b) Rise again due to emerging markets and new, more exciting iPhones?
c) Go down because the smartphone market is saturated and people begin seeing their phone as a tool again, which only gets replaced when they have to?

I'm going with a) and long term c).
AAPL isn't a stock I would buy for keeping it until pension.
Buying AAPL as part of a 5 or 10 year strategy seems to be a good value, still.