Warren Buffett's Berkshire Hathaway owns $91.3 billion worth of Apple stock

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Apple shares now comprise 43% of Warren Buffett's portfolio with Berkshire Hathaway owning $91.3 billion worth of AAPL, according to the holding company's latest shareholder letter.

Credit: Berkshire Hathaway
Credit: Berkshire Hathaway


That's a sharp rise since November 2018, when Apple made up about a quarter of Berkshire Hathaway's portfolio. The more than doubling of Apple's percentage of Buffett's holding has taken place in the past two years, with the coronavirus pandemic accelerating the process.

Buffett's confidence in the Cupertino tech giant is based on several factors. Primarily, the renowned investor has long been a fan of companies with sustainable competitive advantages, The Motley Fool points out.

Apple controls a majority of the U.S. smartphone market, with GlobalStats data suggesting that the company has a 58% share of the market in the country.

Buffett is also a fan of Apple CEO Tim Cook, who has helmed the ship at Cupertino since Apple cofounder Steve Jobs resigned in 2011 due to health reasons. Since then, Apple shares have risen in value 688%.

Apple has also periodically borrows money through bonds at low rates to repurchase shares -- a tactic that Buffett approves of.

Compared to the S&P 500 and other companies in the COVID-19 era, Apple has largely outperformed. Along with its dominant position as an iPhone maker, the company has also been increasingly focused on services and wearbles.

Earlier in 2020, Berkshire Hathaway sold more than $800 million in Apple shares, but the holding company is still Apple's largest shareholder. In fact, Apple's influence on Berkshire Hathaway's portfolio is larger than every other equity combined with the sole exception of its second-largest holding, Band of America.
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Comments

  • Reply 1 of 27
    SpamSandwichSpamSandwich Posts: 33,407member
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    chemengin1GeorgeBMac
  • Reply 2 of 27
    I'm not an expert on Berkshire Hathaway, but my sense was that it was generally a conglomerate of wholly owned subsidiaries rather than just a mutual fund that owned minority shares in various companies.  Now that a single minority investment is approaching half of the value of the company does this represent a fundamental shift in BH? 
  • Reply 3 of 27
    Rayz2016Rayz2016 Posts: 6,957member
    Mmm. 

     🥚🥚🥚——> 🧺 


    vannygee
  • Reply 4 of 27
    crowleycrowley Posts: 10,453member
    Presumably the shift is a fair bit to do with the value of Apple shares rising and other shares falling (or at least not rising as much).  BH hasn't necessarily increased its holding that much by buying more shares, value has just shifted.
    longpathjony0vannygee
  • Reply 5 of 27
    SpamSandwichSpamSandwich Posts: 33,407member
    I'm not an expert on Berkshire Hathaway, but my sense was that it was generally a conglomerate of wholly owned subsidiaries rather than just a mutual fund that owned minority shares in various companies.  Now that a single minority investment is approaching half of the value of the company does this represent a fundamental shift in BH? 
    It means Warren Buffet isn’t really running the company anymore... Apple is.
  • Reply 6 of 27
    MacProMacPro Posts: 19,727member
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.
    SpamSandwichrandominternetpersonGeorgeBMac
  • Reply 7 of 27
    MacProMacPro Posts: 19,727member

    I'm not an expert on Berkshire Hathaway, but my sense was that it was generally a conglomerate of wholly owned subsidiaries rather than just a mutual fund that owned minority shares in various companies.  Now that a single minority investment is approaching half of the value of the company does this represent a fundamental shift in BH? 
    It means Warren Buffet isn’t really running the company anymore... Apple is.
    Steve is!  lol
    SpamSandwichsteve_jobs
  • Reply 8 of 27
    SpamSandwichSpamSandwich Posts: 33,407member
    MacPro said:
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.
    I bought equal amounts of AAPL and MSFT decades ago... guess which stock grew thousands of percent over, while the other just sat there like a dead dog?
  • Reply 9 of 27
    Scot1Scot1 Posts: 121member
    Band of America?
  • Reply 10 of 27
    lkrupplkrupp Posts: 10,557member
    Remember when the the oft quoted logic was, "As GM goes so goes the nation."? I think we can safely substitute Apple for GM. Apple's monstrous capital engine influences almost every aspect of the U.S. economy these days. I think politicians know that and that's why I expect not much in the way of disrupting Apple's business is in the cards any time soon.
    SpamSandwich
  • Reply 11 of 27
    SpamSandwichSpamSandwich Posts: 33,407member
    lkrupp said:
    Remember when the the oft quoted logic was, "As GM goes so goes the nation."? I think we can safely substitute Apple for GM. Apple's monstrous capital engine influences almost every aspect of the U.S. economy these days. I think politicians know that and that's why I expect not much in the way of disrupting Apple's business is in the cards any time soon.
    I’d like to know what are the most widely held stocks today. If AAPL isn’t in the top 10 I’d be very surprised.
  • Reply 12 of 27
    Scot1 said:
    Band of America?
    I saw them in concert a few years ago. It was an amazing show. 

    I’m curious if that $800M sold earlier has been reinvested. IIRC, that was prior to the massive sell-off. 


  • Reply 13 of 27
    GeorgeBMacGeorgeBMac Posts: 11,421member
    MacPro said:
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.

    Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.

    I suspect it may have something to do with what he said in his last stock holder meeting.  To paraphrase:   "There's nothing out there worth buying".
    Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued.   Yes, the virus gave it a quick dip, but the Fed propped right back up again.  For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting.  As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
    baconstangmuthuk_vanalingam
  • Reply 14 of 27
    tommikeletommikele Posts: 599member
    I'm not an expert on Berkshire Hathaway, but my sense was that it was generally a conglomerate of wholly owned subsidiaries rather than just a mutual fund that owned minority shares in various companies.  Now that a single minority investment is approaching half of the value of the company does this represent a fundamental shift in BH? 
    It means Warren Buffet isn’t really running the company anymore... Apple is.
    To say you have an extremely limited knowledge would be a kind way of saying you don't know too much about what you chose to comment on. You know even less about Berkshire Hathaway and Warren Buffet.
    GeorgeBMac
  • Reply 15 of 27
    tommikeletommikele Posts: 599member

    MacPro said:
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.

    Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.

    I suspect it may have something to do with what he said in his last stock holder meeting.  To paraphrase:   "There's nothing out there worth buying".
    Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued.   Yes, the virus gave it a quick dip, but the Fed propped right back up again.  For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting.  As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
    Being articulate and stating opinions firmly and as if they were fact does not makes them true. Being articulate does not equal knowledge about the topic at hand or support  flimsy conclusions. It just means someone talks as if they know what they are talking about when it's doubtful they do.

    Where is your money George? I'm interested to know if you act as good of a game as you talk.
    edited July 2020
  • Reply 16 of 27
    MacProMacPro Posts: 19,727member
    tommikele said:
    I'm not an expert on Berkshire Hathaway, but my sense was that it was generally a conglomerate of wholly owned subsidiaries rather than just a mutual fund that owned minority shares in various companies.  Now that a single minority investment is approaching half of the value of the company does this represent a fundamental shift in BH? 
    It means Warren Buffet isn’t really running the company anymore... Apple is.
    To say you have an extremely limited knowledge would be a kind way of saying you don't know too much about what you chose to comment on. You know even less about Berkshire Hathaway and Warren Buffet.
    All he said, in a half-joking way, was if BH is 43% in Apple then BH is 43% is dependent upon how well Apple does.  That doesn't require knowledge it requires arithmetic.
    bageljoeySpamSandwichmuthuk_vanalingamGeorgeBMac
  • Reply 17 of 27
    MacProMacPro Posts: 19,727member

    MacPro said:
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.

    Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.

    I suspect it may have something to do with what he said in his last stock holder meeting.  To paraphrase:   "There's nothing out there worth buying".
    Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued.   Yes, the virus gave it a quick dip, but the Fed propped right back up again.  For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting.  As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
    Agreed.
  • Reply 18 of 27
    carnegiecarnegie Posts: 1,078member
    I'm not an expert on Berkshire Hathaway, but my sense was that it was generally a conglomerate of wholly owned subsidiaries rather than just a mutual fund that owned minority shares in various companies.  Now that a single minority investment is approaching half of the value of the company does this represent a fundamental shift in BH? 
    Berkshire is both. It owns businesses and makes money from their operations. It also owns equites and makes (or loses) money from changes in their share prices and from paid dividends. Berkshire's equity holdings represent something like half of its current market cap.

    Berkshire would generally like to buy whole businesses. But sometimes that isn't feasible - e.g., because the businesses aren't for sale as wholes or because they're too large to buy in their entireties. So Berkshire sometimes buys portions of businesses it likes by buying shares in them.

    To be clear though, Berkshire's Apple holdings don't represent nearly half of its value. They represent closer to 20%.

    liketheskyGeorgeBMac
  • Reply 19 of 27
    carnegiecarnegie Posts: 1,078member

    crowley said:
    Presumably the shift is a fair bit to do with the value of Apple shares rising and other shares falling (or at least not rising as much).  BH hasn't necessarily increased its holding that much by buying more shares, value has just shifted.
    Yeah. As of the end of 2019, Apple accounted for about 30% of Berkshire's equity holdings. As of the end of March 2020, it accounted for about 35%. The increase hasn't come from Berkshire buying more AAPL shares. The increase has come from AAPL shares outperforming the rest of Berkshire's holdings.
    baconstangGeorgeBMac
  • Reply 20 of 27
    carnegiecarnegie Posts: 1,078member
    MacPro said:
    They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
    I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.

    Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.

    I suspect it may have something to do with what he said in his last stock holder meeting.  To paraphrase:   "There's nothing out there worth buying".
    Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued.   Yes, the virus gave it a quick dip, but the Fed propped right back up again.  For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting.  As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
    I don't think that's what Mr. Buffett has said. He's long said he's interested in making a big acquisition or doing something big with the money Berkshire is sitting on. When asked why he hasn't done so yet he's repeatedly responded with some version of... he hasn't found what he's looking for yet.

    As for American equities in general, he seems to still be bullish - especially when looking at them, as he does, for the long term. He still thinks buying American businesses (not just any, of course) is a smart thing to do with your money. And to him that's what equity investment is - buying pieces of businesses he wants to be a partner in.


    EDIT: As for the Fed's actions earlier this year... Yes, Mr. Buffett commented on them. He stated more or less the obvious... that the Fed, having learned from the past (particularly from 2008-2009), stepped in quickly and aggressively to prevent a liquidity freeze that may otherwise have caused major problems for many companies and caused even more economic damage than we've seen. When companies - big and small - lose access to short-term borrowing, that can be devastating to an economy.
    edited July 2020
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