Warren Buffett says he's holding on to Apple shares, would increase stake at cheaper price...

Posted:
in AAPL Investors edited February 25
On Monday, Berkshire Hathaway's Warren Buffett commented that while his firm isn't selling any more Apple stock, it's waiting for better circumstances to resume share buys.

iPhone XS Japan launch


"If it were cheaper, we'd be buying it. We aren't buying it here," Buffett said on CNBC. "I don't see myself selling - the lower it goes, the better, I like it, obviously."

Berkshire is famously a major Apple shareholder, the latter at one point representing over a quarter of the Berkshire portfolio. Buffett in particular has been bullish on Apple's potential, which is significant since many investors turn to him as a source of direction.

He did trim his company's stake to 249.6 million shares towards the end of 2018, however, presumably because of a disappointing December quarter which missed Apple's original revenue guidance. That in turn was mostly because of a 15 percent decline in iPhone revenues, the worst being in China.

Berkshire first bought into Apple in 2016 with a share purchase worth about $1 billion, a figure that was extended to 57.4 million shares by the end of 2016. Its stake increased to 133 million shares a quarter later.

The company's last acquisition of Apple shares occurred in the second quarter. In August, Buffett explained that he considered Apple and the iPhone a reliable investment.

"I do not focus on the [iPhone] sales in the next quarter or the next year," he said. "I focus on the -- they won't tell you exactly how many -- but hundreds and hundreds and hundreds of millions of people who practically live their lives by it. And if you look at that little...piece of whatever it is, it's some the most valuable real estate in the world."

He did however recommend against Apple entering the auto business, something it may be doing with Project Titan.

"It's not an easy business," Buffett commented. "You can win in auto one year and lose the next. You've got a dozen big companies out there with resources. They're going to keep coming. They're going to copy what you do."

Comments

  • Reply 1 of 18
    On Monday, Berkshire Hathaway's Warren Buffett commented that while his firm isn't

    He did trim his company's stake to 249.6 million shares towards the end of 2018, however, presumably because of a disappointing December quarter which missed Apple's original revenue guidance. That in turn was mostly because of a 15 percent decline in iPhone revenues, the worst being in China.
    249.9 million shares down from 251.9 is 1%. Why even mention it here?
    SpamSandwichStrangeDayslolliver
  • Reply 2 of 18
    lkrupplkrupp Posts: 7,164member
    What a fool! Buffet should listen to the myriad of experts right here in the AI forums. The consensus here is that Apple is on the way down and eventually out.
    flydogStrangeDaysmacxpresstmayanantksundarambb-15badmonkjony0
  • Reply 3 of 18
    genovelle said:
    On Monday, Berkshire Hathaway's Warren Buffett commented that while his firm isn't

    He did trim his company's stake to 249.6 million shares towards the end of 2018, however, presumably because of a disappointing December quarter which missed Apple's original revenue guidance. That in turn was mostly because of a 15 percent decline in iPhone revenues, the worst being in China.
    249.9 million shares down from 251.9 is 1%. Why even mention it here?
    I like his statement regarding how many millions practically live their lives on it. Who would not like to own a piece of a company that designs and engineers a product, with the quality, detail and oversight, that people use 24/7? Would really like to know the stats regarding how many iPhone registered owners own a second Apple product?
    lolliverbadmonk
  • Reply 4 of 18
    We may be above average but here at the house we have 17 Apple products that I can find....
    bb-15lkrupplolliverbadmonk
  • Reply 5 of 18
    flydogflydog Posts: 328member
    genovelle said:
    On Monday, Berkshire Hathaway's Warren Buffett commented that while his firm isn't

    He did trim his company's stake to 249.6 million shares towards the end of 2018, however, presumably because of a disappointing December quarter which missed Apple's original revenue guidance. That in turn was mostly because of a 15 percent decline in iPhone revenues, the worst being in China.
    249.9 million shares down from 251.9 is 1%. Why even mention it here?
    Generate ad revenue and to lend support to a specious argument that the sale was motivated by a downturn in iPhone sales. 
    edited February 25 lkrupp
  • Reply 6 of 18
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    edited February 25 lolliver
  • Reply 7 of 18
    But but but techie curmudgeons on rumor sites said Apple stuff costs too much!

    What? They've been saying this for going on 40 years now? Oh...
    edited February 25 lkrupplolliver
  • Reply 8 of 18
    radarthekatradarthekat Posts: 3,117moderator
    genovelle said:
    On Monday, Berkshire Hathaway's Warren Buffett commented that while his firm isn't

    He did trim his company's stake to 249.6 million shares towards the end of 2018, however, presumably because of a disappointing December quarter which missed Apple's original revenue guidance. That in turn was mostly because of a 15 percent decline in iPhone revenues, the worst being in China.
    249.9 million shares down from 251.9 is 1%. Why even mention it here?
    And Buffett explained the sale, by another manager raising money for some other purchase.  Likely he had almost enough to make that purchase and needed a bit more so sold a smidge of Apple shares.  
    cornchip
  • Reply 9 of 18
    maestro64maestro64 Posts: 4,642member
    Why not when he is already making $500M every year on dividends. Recently he said he has $150B sideline in short term investments since he does not see any bargains. I guess the Apple dividend check has more value to him than short term investments. 
    cornchipbb-15
  • Reply 10 of 18
    slurpyslurpy Posts: 5,173member
    Warren Buffet sold 1% of his shares? This is firm proof that Apple is finished, and that Cook is the worst CEO in the history of CEOs. 

    Seriously, the headlines made it seem as if Buffet liquidated his entire position and announced that the company is dead to him. 
    lkruppStrangeDayslolliver
  • Reply 11 of 18
    genovelle said:
    On Monday, Berkshire Hathaway's Warren Buffett commented that while his firm isn't

    He did trim his company's stake to 249.6 million shares towards the end of 2018, however, presumably because of a disappointing December quarter which missed Apple's original revenue guidance. That in turn was mostly because of a 15 percent decline in iPhone revenues, the worst being in China.
    249.9 million shares down from 251.9 is 1%. Why even mention it here?
    Maybe it just happened to come up while discussing the Kraft Heinz write down.
  • Reply 12 of 18
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    I am missing your point... what is it?
  • Reply 13 of 18
    gatorguygatorguy Posts: 20,918member
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    I am missing your point... what is it?
    WRT Buffett's comments about the advisability of an "Apple Car" @SpamSandwich ; probably refers to this:
    http://fortune.com/2018/09/26/warren-buffett-berkshire-hathaway-byd-china-electric-cars/
    SpamSandwich
  • Reply 14 of 18
    gatorguy said:
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    I am missing your point... what is it?
    WRT Buffett's comments about the advisability of an "Apple Car" @SpamSandwich ; probably refers to this:
    http://fortune.com/2018/09/26/warren-buffett-berkshire-hathaway-byd-china-electric-cars/
    I know that he's referring to BYD, thanks. That's not what I was talking about.

    What was his point about "transparency"?! (Actually, I'd rather let him answer).
    edited February 25
  • Reply 15 of 18
    As someone else posted above, WB clarified that he himself didn't sell of any of his shares that he purchased. He has 2 other people who work for him who are responsible for about 10 billion in stock and 1 of them sold some AAPL to make room for another stock he had wanted to buy.
    lolliver
  • Reply 16 of 18
    gatorguygatorguy Posts: 20,918member
    gatorguy said:
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    I am missing your point... what is it?
    WRT Buffett's comments about the advisability of an "Apple Car" @SpamSandwich ; probably refers to this:
    http://fortune.com/2018/09/26/warren-buffett-berkshire-hathaway-byd-china-electric-cars/
    ...BYD
    That's an acronym I'm not familiar with
    edited February 26
  • Reply 17 of 18
    gatorguy said:
    gatorguy said:
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    I am missing your point... what is it?
    WRT Buffett's comments about the advisability of an "Apple Car" @SpamSandwich ; probably refers to this:
    http://fortune.com/2018/09/26/warren-buffett-berkshire-hathaway-byd-china-electric-cars/
    ...BYD
    That's an acronym I'm not familiar with
    “Build Your Dreams” (BYD) the Chinese electric car company.
  • Reply 18 of 18
    gatorguy said:
    Buffet is so transparent in his motivations. Everyone knows has a large investment in a Chinese electric car company... right?
    I am missing your point... what is it?
    WRT Buffett's comments about the advisability of an "Apple Car" @SpamSandwich ; probably refers to this:
    http://fortune.com/2018/09/26/warren-buffett-berkshire-hathaway-byd-china-electric-cars/
    I know that he's referring to BYD, thanks. That's not what I was talking about.

    What was his point about "transparency"?! (Actually, I'd rather let him answer).
    Not “transparency”, his motivation for dissuading Apple from entering the electric vehicle market was a transparent attempt to protect his other investment.
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