AAPL shares now make up 43% of Berkshire Hathaway’s stocks, says a new analysis. Warren Buffett’s conglomerate owns $91.3B worth of Apple stock – giving it 5.5% of the company – of a total $213.6B across all 46 companies in its portfolio.
That investment has paid off big-time, the conglomerate’s AAPL holdings seeing $55B in growth since the beginning of 2019 …
The Motley Fool ran the numbers on Berkshire Hathaway stocks.
It says that Buffett invested in AAPL for three reasons.
Business Insider notes that comparing the average price paid by Berkshire for its AAPL stock to yesterday’s close tells its own story.
Look outside any Apple store prior to the release of a new iPhone, and you’ll understand the power of its brand. Apple is a dominant player in the U.S. smartphone market, with GlobalStats’ data for June 2020 showing that the company controlled better than 58% of mobile vendor market share. No matter what products Apple puts out, there’s an almost cult-like following of consumers that’ll be in line to buy it. Its brand has lasting power, and that’s what initially attracted Buffett to Apple in 2016.
As noted, there’s also the Tim Cook factor. Apple’s CEO has masterfully managed the company in the nearly nine years since Steve Jobs suddenly resigned his post due to health reasons. Over that time frame, and inclusive of dividends paid, Apple’s stock has appreciated by a cool 688%. I doubt much that any of the company’s shareholders are complaining.
And don’t forget about Apple’s shareholder return program. Apple has been willing to borrow money at exceptionally low rates in order to repurchase its own stock, which is a strategy that Buffett fully endorses.
Buffett said earlier this year that Apple is ‘probably the best business I know in the world’ – even if he did need Tim Cook’s help to learn how to use his iPhone 11.
Photo: Medium
