You probably don’t have to be an investment genius to know that buying shares in Apple has always been a good idea, but it’s always striking how bad such an investment has turned out. proved good for investment genius Warren Buffett and his investment firm Berkshire Hathaway. After recently hitting new highs on the stock market, Buffett’s stake in the company nearly tripled to over $ 100 billion from the $ 35 billion initially spent.
In Buffett’s 2019 letter to Berkshire Hathaway shareholders, Buffett said he spent about $ 35 billion on a total of 250 million Apple shares at various times between 2016 and 2018. He gave up roughly. five million shares since then, leaving its current stake at a very lucrative 245 million shares.
What is the profitability? Berkshire Hathaway’s stake in Apple brings in $ 800 million a year in dividends, and it has only grown in value in recent months. Apple shares have risen 42% this year, and Buffett’s 5.7% stake in the company has simultaneously climbed $ 30 billion in recent months.
In February of this year, Buffett spoke praising his Apple holdings in an interview on CNBC:
“I don’t see Apple as a stock. I think this is our third activity… It is probably the best company I know in the world. And that’s a bigger commitment that we have in any business except insurance and the railroad. “
It wasn’t always what Buffett thought of Apple. In 2011, he said the business wasn’t predictable enough for him to invest significantly, but he obviously changed his mind a few years later – and is now reaping the rewards.
Apple’s recent luck can be attributed to a recent favorable quarterly earnings report that gave the company’s stock price a 10% spike, taking it to $ 425 per share, a new high for the stock. Apple.