Warren Buffett's Berkshire Hathaway bought another 75M Apple shares in Q1

Posted:
in AAPL Investors edited May 4
Ignoring a chorus of analyst doom and gloom, financial mogul Warren Buffett's Berkshire Hathaway bought 75 million shares of Apple stock in the first quarter of 2018, raising the fund's position to just over 240 million shares.

Warren Buffett


Buffett revealed the massive purchase to CNBC on Thursday, two days ahead of Berkshire Hathaway's annual shareholders meeting.

"It is an unbelievable company," Buffett said. "If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States."

Berkshire is due to release its quarterly earnings report on Saturday, where investors will be able to peruse the fund's top 10 largest holdings. Buffett said the enhanced position would be obvious to those following along.

The huge first quarter purchase is thought to bolster the 165.3 million Apple shares Berkshire owned at the end of 2017. If the fund held its position, as the report suggests, the resulting 240.3 million shares were worth about $42.5 billion at the end of trading on Thursday.

Though he initially shied away from tech stocks, Buffett can be considered a convert, at least in the case of Apple. The "Oracle of Omaha" first bought into the company in 2016 with a share purchase worth about $1 billion. He extended that position to 57.4 million shares worth about $6.64 billion at the end of 2016, only to raise Berkshire's stake to 133 million shares a quarter later.

Apple was Berkshire's second-largest holding last year, sitting just behind Wells Fargo. Berkshire's other tech industry bet, IBM, failed to impress, and the fund ultimately dumped 94.5 percent of its holdings in the company late last year.

Buffett has consistently heaped praise on Apple and its "sticky" product offerings, particularly iPhone.

"Apple has an extraordinary consumer franchise," Buffett said in February. "I see how strong that ecosystem is, to an extraordinary degree. You are very, very, very locked in, at least psychologically and mentally, to the product you are using. [iPhone] is a very sticky product."

News of Buffett's big bet on Apple arrives just two days after the Cupertino tech giant posted its best March quarter ever, reporting revenue of $66.1 billion on 52.2 million iPhone sales. Leading up to the earnings report, analysts cast doubt on the company's decision to market a $1,000 smartphone in iPhone X. Critics were silenced when CEO Tim Cook noted -- multiple times -- during an ensuing earnings conference call that the flagship handset outsold all other iPhone models since its launch in November.
eideard
«1

Comments

  • Reply 1 of 24
    eideardeideard Posts: 351member
    Good for Uncle Warren,,,
    h2pwatto_cobra
  • Reply 2 of 24
    carnegiecarnegie Posts: 401member
    So Mr. Buffett is the source of those pessimistic iPhone X supply chain rumors...
    lollivertmayStevenSterkchristophbjony0watto_cobra
  • Reply 3 of 24
    Meanwhile, earlier today another supplier Skyworks Solutions released lower than expected estimate.  And I quote: 

    "...Analyst Kumar said the guidance was "really not that bad" as investors expected much worse because of soft trends at Apple."

    Say what?  "Soft trends at Apple"????? Did this guy from Piper Jeffrey sleep through the entire earnings report and call two days ago? 

    The narrative on the street is that iPhone demand is in sharp decline and X is a miserable failure. That sell side crowd simply refuses to believe in evidence.  They just continue their narrative as if Tim Cook conference call were in another universe.

    It is good to see Uncle Warren being the ultimate value seeker here and ignoring all the garbage from the sell side. 
    equality72521muthuk_vanalingamh2pwatto_cobra
  • Reply 4 of 24
    mindwavesmindwaves Posts: 49member
    I'm still working on my first million shares.
    king editor the gratewatto_cobra
  • Reply 5 of 24
    gmgravytraingmgravytrain Posts: 712member
    Mr. Buffet does his own research when buying stock. I doubt he listens to any of those jackass analysts. Analysts definitely have a beef against Apple. They all think that Amazon should be the top company on Wall Street because they all worship Jeff Bezos and his dreams of building an unbeatable monopoly.

    Honestly, how many times has Tim Cook warned analysts not to use supply chain information to predict iPhone sales? Yet those analysts do the same thing each and every financial quarter a couple of weeks before Apple earnings. They're either stubborn or stupid or maybe both. They're always finding something negative they can write in their reports about poor iPhone sales to scare shareholders to toss their stock into the toilet.

    "Don't buy Apple. Buy FANG stocks, instead." It's always that same garbage. Those analysts all believe If a company doesn't have double-digit revenue growth then it's not worth buying. It's that greed mentality that's ruining the stock market and costing naive investors millions of dollars in losses. Full panic mode for Apple... disgusting.  At least hold Apple for the dividends.  It's much better than bank interest.
    edited May 4 RonnnieOpotatoleeksoupwatto_cobra
  • Reply 6 of 24
    jonkoayjonkoay Posts: 1unconfirmed, member
    I am certain Berkshire would have bought even more shares last week, thanks to bonehead analysts. Don't listen to analysts, you'll get really poor for doing so. Businesses don't collapsed overnight, it only happens in Wall Street.
    watto_cobra
  • Reply 7 of 24
    KuyangkohKuyangkoh Posts: 210member
    When did Amazon made any money worth billions selling products?? 
    watto_cobra
  • Reply 8 of 24
    Meanwhile, earlier today another supplier Skyworks Solutions released lower than expected estimate.  And I quote: 

    "...Analyst Kumar said the guidance was "really not that bad" as investors expected much worse because of soft trends at Apple."

    Say what?  "Soft trends at Apple"????? Did this guy from Piper Jeffrey sleep through the entire earnings report and call two days ago? 

    The narrative on the street is that iPhone demand is in sharp decline and X is a miserable failure. That sell side crowd simply refuses to believe in evidence.  They just continue their narrative as if Tim Cook conference call were in another universe.

    It is good to see Uncle Warren being the ultimate value seeker here and ignoring all the garbage from the sell side. 
    Cognitive dissonance at best. Wilful sabotage to manipulate price also feasible. 

    https://en.m.wikipedia.org/wiki/Cognitive_dissonance
    potatoleeksoupwatto_cobra
  • Reply 9 of 24
    asciiascii Posts: 5,850member
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
  • Reply 10 of 24
    rogifan_newrogifan_new Posts: 3,237member
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    This was in my Twitter timeline:

    Matthew Yglesias (@mattyglesias)
    Tim Cook’s determination to run Apple in a boring, Buffett-friendly value-stock kind of way is unfortunate for America and the world imo.

    He’s got a point. But also maybe when you get so big it’s inevitable that you become boring.
  • Reply 11 of 24
    macxpressmacxpress Posts: 4,578member
    mindwaves said:
    I'm still working on my first million shares.
    Me too...only a million to go!
    muthuk_vanalingamdysamoriawatto_cobra
  • Reply 12 of 24
    brucemcbrucemc Posts: 1,437member
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    So Apple has no innovation again?  Are you sure you can defend that?
    watto_cobra
  • Reply 13 of 24
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    This was in my Twitter timeline:

    Matthew Yglesias (@mattyglesias)
    Tim Cook’s determination to run Apple in a boring, Buffett-friendly value-stock kind of way is unfortunate for America and the world imo.

    He’s got a point. But also maybe when you get so big it’s inevitable that you become boring.
    Maybe you’re the ones getting a little bored with your supermodel wife. Many dream of wanting one, and then you get one and its as amazing as you thought it was going to be. But then, it begins to look the same and while it’s still good and all, it’s not quite what it once was from your perspective. And then they see all these new super models coming up and they are exploding the runway by primarily doing the same thing your wife did, but it looks different. It looks like how your wife once walked the runway, bold and daring. And then you begin to think why can’t my wife do things like that. But she is, you’ve just got used to it and it no longer feels the same to you.

    I really do feel Apple is STILL king of the castle. Sure they may not be first at everything but they are the ones that push the whole system forward. Those people who are jumping all over Amazon like they are the next big thing, are those that leave their supermodel wife for something new... only to be disappointed in a few years when they get too familiar with them and start asking the same questions all over again and looking for the next big thing. 

    I do think your, ‘get so big, it’s inevitable’ comment does have merit and does play a role, but perhaps the size has more to do with the inability to keep things secret and the expectation that Apple needs to keep pace with all these other supermodels who are trying bold things just to attempt to make a statement, to stand out, and differentiate themselves as they attempt to break into a nearly impenetrable business market. (Side note - if you are arguement is simply referring to the comparison of the push to get voice assistants in the main stream with the already major players in the system, then ignore this argument. :wink:  )
    radarthekath2pretrogustopotatoleeksoupwatto_cobra
  • Reply 14 of 24
    rogifan_newrogifan_new Posts: 3,237member
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    This was in my Twitter timeline:

    Matthew Yglesias (@mattyglesias)
    Tim Cook’s determination to run Apple in a boring, Buffett-friendly value-stock kind of way is unfortunate for America and the world imo.

    He’s got a point. But also maybe when you get so big it’s inevitable that you become boring.
    Maybe you’re the ones getting a little bored with your supermodel wife. Many dream of wanting one, and then you get one and its as amazing as you thought it was going to be. But then, it begins to look the same and while it’s still good and all, it’s not quite what it once was from your perspective. And then they see all these new super models coming up and they are exploding the runway by primarily doing the same thing your wife did, but it looks different. It looks like how your wife once walked the runway, bold and daring. And then you begin to think why can’t my wife do things like that. But she is, you’ve just got used to it and it no longer feels the same to you.

    I really do feel Apple is STILL king of the castle. Sure they may not be first at everything but they are the ones that push the whole system forward. Those people who are jumping all over Amazon like they are the next big thing, are those that leave their supermodel wife for something new... only to be disappointed in a few years when they get too familiar with them and start asking the same questions all over again and looking for the next big thing. 

    I do think your, ‘get so big, it’s inevitable’ comment does have merit and does play a role, but perhaps the size has more to do with the inability to keep things secret and the expectation that Apple needs to keep pace with all these other supermodels who are trying bold things just to attempt to make a statement, to stand out, and differentiate themselves as they attempt to break into a nearly impenetrable business market. (Side note - if you are arguement is simply referring to the comparison of the push to get voice assistants in the main stream with the already major players in the system, then ignore this argument. :wink:  )
    I dunno I think there are missed opportunities. Like canceling the AirPort line. I think Apple had the opportunity to create the best line of mesh network/home hub products. Instead they let the product line languish until they killed it. HomePod had the opportunity to be THE smart speaker right out of the gate. A perfect opportunity for Apple to launch a much improved Siri. Apple could have marketed the product as THE best voice assistant that also has THE best sound. But that’s not what we got and HomePod wasn’t even mentioned on the earnings call which gives a window in to how (un)successful it’s been so far. Of course HomePod can get better over time but I thought Apple’s mantra was we don’t want to be first, we want to be the best. In the case of HomePod they were neither.

    Apple can still wow - I love my iPhone X and AirPods are getting great reviews. I want more of the wow.
    dysamoria
  • Reply 15 of 24
    SpamSandwichSpamSandwich Posts: 29,902member
    Well, this bit of Berkshire news certainly has pushed AAPL over the top.  B)
    edited May 4 jasenj1h2pwatto_cobra
  • Reply 16 of 24
    lkrupplkrupp Posts: 6,403member
    I would like to pity all those fools that panic sold AAPL and drove it down but I can only laugh and smirk at them. They fell for the fear and greed. And Uncle Warren cashed in on their folly. Good for him.
    potatoleeksoupwatto_cobra
  • Reply 17 of 24
    rogifan_new said:, 
    I dunno I think there are missed opportunities. Like canceling the AirPort line. I think Apple had the opportunity to create the best line of mesh network/home hub products. Instead they let the product line languish until they killed it. HomePod had the opportunity to be THE smart speaker right out of the gate. A perfect opportunity for Apple to launch a much improved Siri. Apple could have marketed the product as THE best voice assistant that also has THE best sound. But that’s not what we got and HomePod wasn’t even mentioned on the earnings call which gives a window in to how (un)successful it’s been so far. Of course HomePod can get better over time but I thought Apple’s mantra was we don’t want to be first, we want to be the best. In the case of HomePod they were neither.

    Apple can still wow - I love my iPhone X and AirPods are getting great reviews. I want more of the wow.
    I feel yah!
  • Reply 18 of 24
    mdriftmeyermdriftmeyer Posts: 7,142member
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    This was in my Twitter timeline:

    Matthew Yglesias (@mattyglesias)
    Tim Cook’s determination to run Apple in a boring, Buffett-friendly value-stock kind of way is unfortunate for America and the world imo.

    He’s got a point. But also maybe when you get so big it’s inevitable that you become boring.
    Maybe you’re the ones getting a little bored with your supermodel wife. Many dream of wanting one, and then you get one and its as amazing as you thought it was going to be. But then, it begins to look the same and while it’s still good and all, it’s not quite what it once was from your perspective. And then they see all these new super models coming up and they are exploding the runway by primarily doing the same thing your wife did, but it looks different. It looks like how your wife once walked the runway, bold and daring. And then you begin to think why can’t my wife do things like that. But she is, you’ve just got used to it and it no longer feels the same to you.

    I really do feel Apple is STILL king of the castle. Sure they may not be first at everything but they are the ones that push the whole system forward. Those people who are jumping all over Amazon like they are the next big thing, are those that leave their supermodel wife for something new... only to be disappointed in a few years when they get too familiar with them and start asking the same questions all over again and looking for the next big thing. 

    I do think your, ‘get so big, it’s inevitable’ comment does have merit and does play a role, but perhaps the size has more to do with the inability to keep things secret and the expectation that Apple needs to keep pace with all these other supermodels who are trying bold things just to attempt to make a statement, to stand out, and differentiate themselves as they attempt to break into a nearly impenetrable business market. (Side note - if you are arguement is simply referring to the comparison of the push to get voice assistants in the main stream with the already major players in the system, then ignore this argument. :wink:  )
    I dunno I think there are missed opportunities. Like canceling the AirPort line. I think Apple had the opportunity to create the best line of mesh network/home hub products. Instead they let the product line languish until they killed it. HomePod had the opportunity to be THE smart speaker right out of the gate. A perfect opportunity for Apple to launch a much improved Siri. Apple could have marketed the product as THE best voice assistant that also has THE best sound. But that’s not what we got and HomePod wasn’t even mentioned on the earnings call which gives a window in to how (un)successful it’s been so far. Of course HomePod can get better over time but I thought Apple’s mantra was we don’t want to be first, we want to be the best. In the case of HomePod they were neither.

    Apple can still wow - I love my iPhone X and AirPods are getting great reviews. I want more of the wow.

    As long as the AirPort ease of use can be certified from Apple to work with third parties I'm good to go. That department never was going to be a steady growth for Apple. The HomePod will be big as the inevitable offspring of a larger bass option, paired satellite smaller units, and improved Siri working across the Smart Home expands.

    You'll see spots with pool party entertaining, etc., showing them off.
  • Reply 19 of 24
    asciiascii Posts: 5,850member
    brucemc said:
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    So Apple has no innovation again?  Are you sure you can defend that?
    I would say they are relentlessly incrementally innovative but not paradigm shifting innovative. The second kind is what inspires people and what tech nerds are looking for but the first kind is still a huge benefit to humanity.
  • Reply 20 of 24
    SpamSandwichSpamSandwich Posts: 29,902member
    ascii said:
    brucemc said:
    ascii said:
    Is that good or bad? Buffett buys sensible companies. But as a tech nerd I want innovative companies even if they don't balance the books! I guess it's good if you're an investor and bad if you're a fan.
    So Apple has no innovation again?  Are you sure you can defend that?
    I would say they are relentlessly incrementally innovative but not paradigm shifting innovative. The second kind is what inspires people and what tech nerds are looking for but the first kind is still a huge benefit to humanity.
    Apple "sort of" occupies the space that Microsoft used to occupy when their Windows platform used to matter.
Sign In or Register to comment.