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Buffett’s Apple investment just went up by $8 billion

Berkshire Hathaway’s Chairman and CEO Warren Buffett.

Andrew Harnik | AP

The value of Berkshire Hathaway’s holdings in Apple rose more than $ 8 billion on Friday as Apple shares rose more than 5% on a strong earnings report.

Apple on Thursday reported earnings for the December quarter, with nearly $ 124 billion in sales and strong sales growth in all product lines except the iPad. Investors seemed particularly keen on CEO Tim Cook’s remarks that the supply chain’s headache is getting better.

Berkshire Hathaway began accumulating Apple shares in 2016 and now owns 887,136,000 shares in the iPhone maker, or over 5% of Apple’s outstanding shares, according to FactSet data.

Buffett has been one of Apple’s biggest supporters since 2016, though he initially considered high-flying technology investments to be too risky for Berkshire Hathaway before he started buying Apple shares. Apple now makes up over 40% of Berkshire Hathaway’s portfolio.

Apple regularly issues dividends, which Buffett has said is attractive under his investment philosophy.

“I do not think of Apple as a stock. I think of it as our third business,” Buffett told CNBC in 2020, calling it “probably the best business I know of in the world.”

Buffett has also argued that Apple’s iPhone ecosystem is “sticky” and encourages customers to upgrade regularly, making it a safer investment and more like a consumer company than a technology company.

Cook has also praised Berkshire’s investment in Apple. “We’re running the business long term. So the fact that we have the ultimate long-term investor in the stock is incredible,” Cook told CNBC in 2019.

However, the mutual admiration between the two business titans goes beyond investments. In 2019, Apple briefly released a game based on Buffett’s childhood, which was presented at Berkshire Hathaway’s shareholders’ meeting.

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