Warren Buffett's Berkshire Hathaway increases Apple position by 5 percent

Posted:
in AAPL Investors
Financial mogul Warren Buffett's Berkshire Hathaway loaded up on shares of Apple in the second quarter of 2018, increasing the fund's position to nearly 252 million shares at the end of the three-month period.




Over the trailing quarter, Berkshire bought 12,388,244 Apple shares worth some $5.4 billion, bringing the fund's stake in the Cupertino tech giant up to 251,955,877 shares, according to a Securities and Exchange Commission filing released Tuesday. Whether Buffett added to that number since the end of June is unknown.

News of the investment arrives two weeks after the "Oracle of Omaha" revealed buying 75 million Apple shares in the first quarter. Berkshire is Apple's third-largest shareholder behind investment management firms Vanguard and BlackRock, with a 5 percent stake in the company.

Initially loath to invest in tech stocks due in part to their inherent volatility, Buffett has become a convert, at least when it comes to Apple. Berkshire bought into the company in 2016 with a share purchase worth about $1 billion, a figure that was extended to 57.4 million shares at the end of 2016. That stake increased to 133 million shares a quarter later.

In February, Apple was Berkshire's largest holding.

"[Apple] was a company I liked, a business I liked, very much," Buffett said in an interview last week. "It was a company I liked, a business I liked, very much, and we could buy a lot of it I clearly like Apple and why buy 'em to hold, and we bought about 5 percent of the company, and I'd like to own 100 percent of it."

Apple last month reported its best June quarter ever with revenue of $53.3 billion on 41.3 million iPhone sales. Of note, the company's crown jewel iPhone line increased its average selling price to $724.12, up from the $605.62 in the year-ago period, thanks to demand for the premium-priced iPhone X.

On the back of its third fiscal quarter beat, Apple became the first publicly traded U.S. company to be valued at $1 trillion.

Comments

  • Reply 1 of 17
    SpamSandwichSpamSandwich Posts: 30,118member
    Berkshire didn't increase their position "by 5 percent", their position NOW is 5 percent. They own 5 percent of AAPL stock. At least, this is my understanding.
    edited August 14
  • Reply 2 of 17
    Berkshire didn't increase their position "by 5 percent", their position NOW is 5 percent. They own 5 percent of AAPL stock. At least, this is my understanding.
    Both things are true.

    Berkshire Hathaway increased its stake in Apple by about 5%, going from owning about 240 million shares to owning about 252 million shares.

    And...

    Berkshire Hathaway now owns more than 5% of Apple.
    edited August 14 irelandanantksundaramradarthekatpscooter63watto_cobrajony0
  • Reply 3 of 17
    carnegie said:
    Berkshire didn't increase their position "by 5 percent", their position NOW is 5 percent. They own 5 percent of AAPL stock. At least, this is my understanding.
    Both things are true.

    Berkshire Hathaway increased its stake in Apple by about 5%, going from owning about 240 million shares to owning about 252 million shares.

    And...

    Berkshire Hathaway now owns more than 5% of Apple.
    Eureka!
    radarthekat
  • Reply 4 of 17
    irelandireland Posts: 17,459member
    What % of Berkshire owns that 5%?
  • Reply 5 of 17
    Buffett sure has come a long way from Margaritaville.
    SoliradarthekatStrangeDayspscooter63jony0
  • Reply 6 of 17
    ireland said:
    What % of Berkshire owns that 5%?
    I'm not sure this is what you're asking. But as of the end of the second quarter, Berkshire's Apple holdings accounted for about 26% of the value of its equity holdings, That's according to how Berkshire counts its equity investments. Berkshire owns large portions or the entirety of some companies and, consequently, doesn't count them as equity investments.

    The value of Berkshire's Apple stock also accounts for around 10% of its (i.e. Berkshire's) market cap.
  • Reply 7 of 17
    I would note that I think Berkshire owned a little more than 252 million shares of Apple as of the end of the second quarter.

    I say that because, in the past, not all of its equity holdings (i.e. as it considers them) have been reported on the 13F for Berkshire Hathaway Inc itself. Most of its equity holdings are reported on that institutional manager report. But sometimes some of them are reported on the 13F for New England Asset Management Inc.

    Based on the values reported in Berkshire's 10-Qs, I think around 3 million Apple shares (which Berkshire owns) are currently being reported on New England Asset Management's 13F. That would put Berkshire's Apple holdings at around 255 million shares. The amount reported by New England Asset Management (which is attributable to Berkshire Hathaway generally) doesn't seem to have changed in the second quarter though. So the change indicated on Berkshire's most recent 13F - i.e. 12,388,244 - seems to represent the total change for the second quarter. That said, the change indicated on Berkshire's first quarter 13F may have been a little less than the actual change in its Apple holdings. I believe that some of its increase in Apple shares showed up on New England Asset Management's 13F for that quarter. 
    radarthekat
  • Reply 8 of 17
    nunzynunzy Posts: 662member
    It's great to see how Apple is owned more and more by institutional investors. Wall Street is finally getting the message.
  • Reply 9 of 17
    This story makes me happy, since it keeps my AAPL happy. 
    SpamSandwich
  • Reply 10 of 17
    nunzy said:
    It's great to see how Apple is owned more and more by institutional investors. Wall Street is finally getting the message.
    I find it miraculous that it has taken them this long. But it also raises an issue. Is AAPL a growth, value or income stock? Seems to me AAPL is actually all three types of stocks in one!
    edited August 14 nunzywatto_cobrajony0
  • Reply 11 of 17
    Bershire-Hathaway seems to be about the biggest investor buying Apple. It looks like most other big investors are buying Amazon stock at a stunning rate. At nearly $2000 a share, those people have deep, deep pockets. Whereas Apple's market cap might go up $5B in a week, Amazon's market cap goes up that much in a day, and each day at that. Apple simply doesn't have the big investor pull Amazon has. Still, Warren Buffett seems to have made a wise choice with Apple when it comes to those steady dividends.
  • Reply 12 of 17
    nunzy said:
    It's great to see how Apple is owned more and more by institutional investors. Wall Street is finally getting the message.
    Buffet =/= ‘Wall Street’
    nunzyradarthekatanton zuykovwatto_cobra
  • Reply 13 of 17
    radarthekatradarthekat Posts: 2,671moderator
    Buffett says he’d like Berkshire to own 100%.  He could have had his wish, had he had the foresight that some here had.  The $36b he’s invested would have bought the whole company 12 years ago.  Okay, hindsight talking.  Had he invested the $36b in a July 2011 when I took my first stake, he could have owned 15%.  Not bad.
  • Reply 14 of 17
    fallenjtfallenjt Posts: 3,920member
    Shit, big deal! Berkshire only owns 1million x more AAPL than I do...;)
    edited August 15
  • Reply 15 of 17
    JWSCJWSC Posts: 230member
    And I’m sure the stock buybacks had nothing to do with Berkshire’s decision to increase their holdings.  (Since so many here are oddly convinced that buybacks are useless.)

    😏
  • Reply 16 of 17
    YP101YP101 Posts: 39member
    They getting $0.73 dividend per share. Rough calculate as 200 million shares = $146 million per qtr = $584 million per year.
    As long as Apple can produce the money, this is money printing cash cow for them.
  • Reply 17 of 17
    YP101 said:
    They getting $0.73 dividend per share. Rough calculate as 200 million shares = $146 million per qtr = $584 million per year.
    As long as Apple can produce the money, this is money printing cash cow for them.
    Apple could end up being one of the more reliably returning investments in their portfolio.
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