Warren Buffett's Berkshire Hathaway increases Apple stake by 23.3 percent, now its largest...

Posted:
in AAPL Investors edited February 2018
Legendary investor Warren Buffett's Berkshire Hathaway continued to bet big on Apple over the fourth quarter 2017, raising its stake in the tech giant by 23.3 percent to hit 165.3 million shares, according to a Securities and Exchange Commission filing.




Alongside the boosted stake in Apple, Berkshire Hathaway dumped 94.5 percent of its IBM holdings over the three months ending 2017, reports CNBC.

If the fund still owns its recently reported Apple holdings, the 165.3 million shares are worth about $27.7 billion at the end of trading on Wednesday.

Buffett has steadily increased his stake in Apple after taking a first bite in 2016 worth $1 billion. At the end of that year, Berkshire's position moved up to 57.4 million shares worth some $6.64 billion, but that figure quickly jumped to 133 million shares worth $17 billion as of last February.

Though Buffett initially shied away from tech sector stocks, mostly due to inherent volatility, the Oracle of Omaha has modified his investing pattern to accommodate certain big-name players including Apple and IBM. The latter has failed to impress, however, as seen by Berkshire's recently diminished position.

The investor has lauded Apple's "sticky" product offering and zealous customer base, noting a device like iPhone is a "valuable product to people that build their lives around."

"I can very easily determine the competitive position of Apple now and who's trying to chase them and how easy it is to chase them," Buffett said in an interview last year.
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Comments

  • Reply 1 of 28
    Uh oh.  He’s right on my tail now. I might need to up my AAPL stake. 
    Soliradarthekatjony0fotoformatwatto_cobraanton zuykovdws-2
  • Reply 2 of 28
    radarthekatradarthekat Posts: 2,995moderator
    I increased both my Apple and IBM stakes over the last several months.  But my 500 IBM shares are dwarfed by my 7500 Apple shares.  I clearly have relatively more confidence in IBM’s future than Buffett has, but we’re of similar minds regarding Apple.  
    watto_cobraSpamSandwich
  • Reply 3 of 28
    Very good news and should help support the stock on the way to the next earnings report where the cash discussion will flesh out.
  • Reply 4 of 28
    SoliSoli Posts: 8,678member
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
  • Reply 5 of 28
    Soli said:
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
    That’s the thing, Apple is not selling tech, tech is a means to get there. They’re selling a brand that comes with a set of values and expectations from the client. 

    If if you are only selling tech, well what will happen when the next tech comes along.
    lolliverjony0boogerman2000
  • Reply 6 of 28
    fallenjtfallenjt Posts: 3,976member
    I increased both my Apple and IBM stakes over the last several months.  But my 500 IBM shares are dwarfed by my 7500 Apple shares.  I clearly have relatively more confidence in IBM’s future than Buffett has, but we’re of similar minds regarding Apple.  
    You know that Buffet was rarely wrong, right?
    edited February 2018
  • Reply 7 of 28
    fallenjtfallenjt Posts: 3,976member
    Uh oh.  He’s right on my tail now. I might need to up my AAPL stake. 
    He just surpassed me by only 0.1% damn.
    randominternetperson
  • Reply 8 of 28
    fallenjtfallenjt Posts: 3,976member
    Soli said:
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
    I guess the person you looked to was Ming Chi Kuo.
    rotateleftbyte
  • Reply 9 of 28
    slurpyslurpy Posts: 5,115member
    I increased both my Apple and IBM stakes over the last several months.  But my 500 IBM shares are dwarfed by my 7500 Apple shares.  I clearly have relatively more confidence in IBM’s future than Buffett has, but we’re of similar minds regarding Apple.  

    7500 AAPL shares? WOW. 
    anton zuykovpotatoleeksoup
  • Reply 10 of 28
    tshapitshapi Posts: 291member
    foggyhill said:
    Soli said:
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
    That’s the thing, Apple is not selling tech, tech is a means to get there. They’re selling a brand that comes with a set of values and expectations from the client. 

    If if you are only selling tech, well what will happen when the next tech comes along.
    Apple IS selling TECH! While the iPhone is designed to last 3-4 years. Most people upgrade every 12-24 months. Driven by the need for the latest greatest tech!  The reason Apple is successful is becuase they strive to be luxury tech with a sticky ecosystem and a branded set of values that keep people loyal 
    watto_cobra
  • Reply 11 of 28
    SoliSoli Posts: 8,678member
    fallenjt said:
    Soli said:
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
    I guess the person you looked to was Ming Chi Kuo.
    How is that a reasonable response? Buffett has made statements over the years that he doesn't understand the tech markets.
  • Reply 12 of 28
    Uh oh.  He’s right on my tail now. I might need to up my AAPL stake. 
    Should have done that yesterday.

    Now you'll need to stand in line :))
  • Reply 13 of 28
    I increased both my Apple and IBM stakes over the last several months.  But my 500 IBM shares are dwarfed by my 7500 Apple shares.  I clearly have relatively more confidence in IBM’s future than Buffett has, but we’re of similar minds regarding Apple.  
    I would dump IBM (as I did some time ago) and buy NVDA. It's high but I believe it has a long way to run.

    People used to dismiss AAPL with "it's too high, no more room". Well, my oldest shares have a basis (adjusted) of 3, and many between 10 and 20. It has been just that good. And I think that NVDA will do likewise. Time will tell.
  • Reply 14 of 28
    I bought some more last week at $155. 

    I think Apple’s valuation is ludicrous. Buy. Hold. Forget about it. 
    Solirandominternetperson
  • Reply 15 of 28
    quinneyquinney Posts: 2,524member
    Radar's got the lunch tab.
    potatoleeksoupjasenj1
  • Reply 16 of 28
    SoliSoli Posts: 8,678member
    I bought some more last week at $155. 

    I think Apple’s valuation is ludicrous. Buy. Hold. Forget about it. 
    That's what I did. When people freak out I invest.
    anantksundarampotatoleeksoup
  • Reply 17 of 28
    MacProMacPro Posts: 18,141member
    Uh oh.  He’s right on my tail now. I might need to up my AAPL stake. 
    LOL, mee too.  I bet Gatorguy bought a ton when it dipped too.
    edited February 2018 watto_cobra
  • Reply 18 of 28
    foggyhillfoggyhill Posts: 4,767member
    tshapi said:
    foggyhill said:
    Soli said:
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
    That’s the thing, Apple is not selling tech, tech is a means to get there. They’re selling a brand that comes with a set of values and expectations from the client. 

    If if you are only selling tech, well what will happen when the next tech comes along.
    Apple IS selling TECH! While the iPhone is designed to last 3-4 years. Most people upgrade every 12-24 months. Driven by the need for the latest greatest tech!  The reason Apple is successful is becuase they strive to be luxury tech with a sticky ecosystem and a branded set of values that keep people loyal 
    You didn't read what I wrote, I said the god damn tech is just a means to what they're actually selling.

    WTF do you think the client is buying? It's not a set of specs. So, again they're not selling tech.

    The whole "it just works" and "enriching people's life in a transparent way" is what they're selling.

    The tech fades away and you are left with just what it does. WHAT IT DOES FOR PEOPLE IS WHAT THEY"RE SELLING.
    holysmokesrotateleftbytewatto_cobra
  • Reply 19 of 28
    Rayz2016Rayz2016 Posts: 4,556member
    tshapi said:
    foggyhill said:
    Soli said:
    This bodes well for AAPL and my investments, and yet Buffett isn't who I look to for understand the tech market.
    That’s the thing, Apple is not selling tech, tech is a means to get there. They’re selling a brand that comes with a set of values and expectations from the client. 

    If if you are only selling tech, well what will happen when the next tech comes along.
    Apple IS selling TECH! While the iPhone is designed to last 3-4 years. Most people upgrade every 12-24 months. Driven by the need for the latest greatest tech!  The reason Apple is successful is becuase they strive to be luxury tech with a sticky ecosystem and a branded set of values that keep people loyal 
    Nope, they’re selling a life style of convenience. If they were selling tech then every advert would be a spec list. 
    holysmokeswatto_cobrapotatoleeksoup
  • Reply 20 of 28
    foggyhill said:

    The whole "it just works" and "enriching people's life in a transparent way" is what they're selling.

    The tech fades away and you are left with just what it does. WHAT IT DOES FOR PEOPLE IS WHAT THEY"RE SELLING.
    Exactly why I ditched Microsoft and bought a Macbook Pro in 2008.

    Apple has the 'Eace of Use' thing pretty well sewn up especially when compared to MS etc.
    After fighting the Windows madness and mess (I called it the Windows 'madmess') in my day job I couldn't face it at home.
    By making it easy for people to use they create a uniqueness that keeps people buying their stuff.
    Easy to use things are just one of the aspects of Apple tech that make the company what it is.
    watto_cobra
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