Kierkegaarden

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Kierkegaarden
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  • Apple's 'Crush' iPad Pro ad sparks intense backlash from creatives

    KierkegaardenKierkegaarden
    Good grief man, some people with be offended with anything.
    lotoneswatto_cobraradarthekat

  • Apple's new iPad Pro gets M4 power, advanced Tandem OLED screens

    KierkegaardenKierkegaarden
    Maybe a combination of M4 efficiency and new thermal structure was required before giving the iPad more Mac-like capabilities?  Really looking forward to WWDC!
    watto_cobra

  • Apple's new iPad Pro gets M4 power, advanced Tandem OLED screens

    KierkegaardenKierkegaarden
    That’s a lot of power — I can’t help think that something else with be unveiled at WWDC to take advantage of this.  Maybe I’m completely off, 
    tmaybala1234AfarstarAniMillwatto_cobrajahbladeAlex1N

  • Warren Buffett has sold a lot of Apple stock so far in 2024

    KierkegaardenKierkegaarden
    Interesting video I just saw posted — interview question about the reasons behind BH selling some Apple shares recently:

    https://m.youtube.com/watch?v=7OG2LBjmNQM

    I had thought that he might bring up rebalancing, but not a hint of this.  It appears that he is looking at the current corporate tax rate (21%) and wanting to lock in that rate with the belief that the rate will increase in the future.  I believe the corporate rate reduction from 2018 is set to expire next year, unless it is extended.  The individual capital gain rate wasn’t reduced in 2018, so any increase of this is unknown, and depends on the elections this year.

    Aside from this, Buffett spoke of building up their cash position.  He didn’t explain why, so I don’t know if they have an acquisition targeted, or maybe they see a recession on the horizon?  

    Thoughts?
    radarthekatFileMakerFeller

  • Warren Buffett has sold a lot of Apple stock so far in 2024

    KierkegaardenKierkegaarden
    jellybelly said:
    ssfe11 said:
    Half of Buffett portfolio is Apple stock. Yes I said half. That is amazing and there is no way you can’t not diversify away a bit. Way too much allocated to one stock and I’m sure Buffett heard this constantly from the new younger berkshire managers. Means nothing but that explains some of the price drop this year. 
    Yes, most people just don’t understand this.  Speak with any investment advisor and they will most likely tell you to have no more than 10% in any one equity, or even in one particular sector.  When you get above this, it may be time to “rebalance”.
    Young Padawans, look deeper into the world of finance and at what Berkshire Hathaway (BRK)/Warren Buffet invested in AAPL cost compared to their assets, as well as when they invested (2016 through 2018). And learn Buffet’s philosophy of finding companies that are worth holding for a very long time, even if they are so successful as to seem unbalanced proportion of their investment because of continuing success.

    BRK is a holding company of wholly owned subsidiaries (no longer available on the market ) AND partially owned companies ( owning stock). So you’ll see that the CURRENT VALUE of their AAPL shares is 50% of their partially owned companies, referred to as their  ‘stock investment portfolio’.  But that’s less than half of the story. 

    BRK bought most of their AAPL shares between 2016 and 2018 at an average price of $35 per share.  From their Annual Report for 2018, the company assets (largely their investments in wholly owned companies and partially owned companies) were $707,794,000,000.  The cost of the shares AAPL they had purchased was $36,044,000,000 (that was 5.4% of AAPL shares outstanding or market cap at that time, fairly close to estimated 5.6% today or even mentioned elsewhere as 6% of Apple— most of that increase in their ownership due to stock buybacks as they bought little or no more shares after 2018).

    As an investment company, as per their own Annual Report company description, the BRK investment in AAPL was approximately 5.1% of their assets as of the end of 2018. 
    BRK’s cost of AAPL shares as a percentage of their partially owned companies stock portfolio total was 35.04%.  Interestingly however at that time, the market value of their AAPL. shares was only 23.31% of their partially owned companies portfolio. The other partially owned companies were averaging better at that time than Apple. 

    Closing price on Friday ( May 3, 2024) was $183.38.  That is approximately 5.24 times the cost they paid.  That huge increase is how they got to 50% of their partially owned companies or what we call their “stock market portfolio”.  Warren Buffet’s investment philosophy is to invest long term in companies you believe will succeed and grow in value. He buys and holds.  

    BRK’s 2023 Annual Report states Assets of $1,069 billion. With AAPL shares owned by BRK at a value mentioned in this article of $135.4 billion, that pits the current value of investment in Apple at 12.65% of their assets.  

    But the original cost of AAPL purchase was $36.04 billion, putting that original cost at 3.4% of their current assets. Wow!  Remember, their business asset is owning wholly or partially, other companies. That ownership of 100’s of companies is their business—that ownership is their asset.  I’d say BRK/Warren Buffet made a good return on that investment.  

    I’ll go out on a limb and say I believe while they may sell some more of Apple stock, I don’t think it will be much more—I doubt they’ll go below a 4% or even 5% stake in Apple. 

    Your philosophy of 10% maximum in any one company would have had you selling AAPL that you might have purchased in 2018 because it was doing so much better than the rest of your portfolio. Nah, probably not? Or if you invested in 2011 would you have sold the stock
    if it swelled to too much of your portfolio? Don’t forget that between 2020 and 2021 the stock price doubled. 

    I did this research and took the time to write this because your harsh judgement of Warren Buffet really pissed me off.  I really hope you can pull back from any judgement at all and just keep learning long term—it’s a rewarding investment in yourselves (2 of you)  and worthwhile for all of us, myself included.

    I’ve included screen captures of pages from the BRK 2018 Annual Report to show their position with AAPL and their asset statement.  Also is a really nice graphic of companies owned wholly and partially.  The owned companies graphic is cool but shows a fraction of the wholly owned companies and those companies’ subsidiaries. The graphic is from BRK 2021 Annual Report.
    PDF is mind boggling chart of companies and subsidiaries of Berkshire Hathaway.  



    Calm down.  You obviously didn’t actually read or understand what I wrote.  I was agreeing with another post that I took to mean that Buffett selling  shares wasn’t because of any negative sentiment towards the company, but probably just routine rebalancing.  That’s it.  And I mentioned advisors because I’ve run into that advice for years.  I have owned  since 2007, never have sold any shares and only bought more.  It is the highest concentration of my holdings, and this freaks advisors out.  They also have a fiduciary obligation to recommend lowering that concentration.  And the thresholds they have are based on current market value, not cost basis.
    FileMakerFeller