- General
- August 5, 2018
- 4 minutes read
Warren Buffett’s Berkshire Hathaway gains from Apple stake now worth nearly $50 Billion
Berkshire Hathaway’s 47 year long running CEO Warren Buffett image credit : Flickr/freeimage4life Investment giant and Warren Buffett chaired Berkshire…
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| Berkshire Hathaway’s 47 year long running CEO Warren Buffett
image credit : Flickr/freeimage4life
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Investment giant and Warren Buffett chaired Berkshire Hathaway has stood out as a major winner in Apple’s rally as the company recently hit an all time high and major milestone of a $1 Trillion market cap with Berkshire reported to hold a stake worth nearly $50 Billion amassed in previous times at cheaper prices marking a huge win for the Omaha based company.
As reported by The Wall Street Journal citing data from FactSet, Berkshire first purchased shares of the Cupertino based iPhone maker in Q1 2016 amassing a $1 Billion stake at a price of $99.02 a share.
The investment company later funneled huge amounts towards the purchase of more shares with an additional 75 million shares purchased in the first quarter of this year alone. This was in addition to a declared stake of 165.3 million shares Berkshire already owned as of the end of last year.
At the end of June, Berkshire reported its Apple stake to be worth $47.2 Billion and with an increase in price has very likely inched close to $50 Billion.
“It is an unbelievable company,” quoting Buffett. “If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States.”
Berkshire’s recently released results reported $10.9 Billion in net profits for the first half of this year with the value of its investments soaring by $5 Billion thanks in part to its holdings of Apple shares.
Berkshire Hathaway now stands as the company’s 3rd largest shareholder behind investment powerhouses Vanguard and Blackrock making Apple a key part of its investment portfolio along with other companies including American Express, Coca Cola, Bank of America, Wells Fargo and others.
Buffett in previous times had stayed away from investing in the technology sector due to a stated lack of understanding of the business models but with recent statements on regretting not buying into Alphabet and Amazon early and a mulled $3 Billion investment into Uber which didn’t come to fruition, It seems Berkshire is getting more interested in the technology scene.
