“Warren Buffett’s Berkshire Hathaway will make about $700 million a year from its Apple holdings just by collecting dividends,” Tae Kim reports for CNBC.
“The Oracle of Omaha revealed to CNBC that Berkshire bought an astounding 75 million shares of Apple during the first quarter,” Kim reports. “That adds to the 165.3 million shares Berkshire already owned at the end of 2017.”
“On Tuesday the smartphone maker announced a quarterly dividend increase of 16 percent, to 73 cents a share,” Kim reports. “Berkshire Hathaway’s latest Apple position size will generate $701.7 million per year in dividend payments for the company.”
Read more in the full article here.
MacDailyNews Take: There’s a nice little windfall.
Interns: Tap those kegs! Cheers, everyone!
SEE ALSO:
Warren Buffett’s Berkshire Hathaway bought 75 million more Apple shares during the first quarter – May 4, 2018
Why was iPhone X so successful at $999 despite a slew of fake news? – May 2, 2018
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Apple’s iPhone X isn’t selling well – or is it? – April 21, 2018
Apple’s iPhone X to be discontinued this year, analyst claims – April 20, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Bernstein: Ams AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Do iPhone X sales spell trouble for Apple? – January 30, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Hey thats a lot more than the $15,000 I am making annually from them.. nice to have an extra $1300 per month in my retirement savings.
I’m sure Uncle Warren HATES that. He is always the champion of retained earnings. Berkshire has NEVER paid a dividend.
And BH use to avoid tech.
I love this guy, now let me explain why🤨 lol. This last 75 mill. purchase stymies Wall Street analysts for enough time to make that run to the big
✨T ✨with much much less resistance.
I wouldn’t call it a windfall. He’s invested nearly $44 billion to get that. No matter how large it seems, it’s still just a measly 2% return.
The reality is a 2% annual dividend while he holds those shares plus an unknown amount of growth until he sells them. If AAPL performs well, he could get a huge return on his investment, just as many have done before with AAPL.
The gain from investing in shares is the sum of the dividends earned while held plus the increase in value when you sell.
That’s right. It’s just the term “windfall” to which I object.
Except that he didn’t invest 44 billion to get that; his investment is now worth 44 billion but he began buying it when Apple was near $100/share.
That’s a good point. My initial investment of 16k in AAPL has more than been paid off in dividends. Of course the stock price has grown considerably more.
I wonder if a lot of investors are confused after being told by analysts how Apple was basically a dying company. You’d think a fair number of investors felt cheated after being given such poor advice to basically sell their Apple stock. Meanwhile, Warren Buffett was quickly buying up their dumped shares.
I guess that’s what happens if investors put too much faith in analyst predictions and don’t bother to do their own research.
he will never be able to retire.
Confusing. MDN hates everything Cook does, splashes bad news from analysts day after day, bitches about Apple mistakes (of which there are too many), then come payday, all is wonderful because the Chinese are snapping up the latest iPhone, isn’t that just genius of Apple.
Then we find Apple’s stock has been buoyed in the market by the personal investment one of the richest guys in the world, who has proven lately to be putting his money more and more into low risk low return investments. Isn’t Warren smart?
What line is MDN going to harp on tomorrow, that the turbulence in the stock market is all because of some evil foreign voodoo affecting what Trumpy said was going to be a huge boom in prosperity for everyone inside the wall?
Keep jumping for joy about your lousy 2% return. It almost keeps up with inflation.
Econ 101? LOL. Don’t flatter yourself.
Careful speaking in absolutes, causing the foundation of your post to be BOTH contradicting AND confusing.
MDN rightly calls it as it is. Like any good parent you discipline when necessary and praise when necessary. Sorry to read that concept alludes and confuses you.
How cute, “Trumpy” and “boom in prosperity for everyone inside the wall?”. Don’t know where you live, but I don’t know anyone in the U.S. that lives inside a wall. So puhleez, cut the partisan crap.
“Keep jumping for joy about your lousy 2% return.” I jump for joy on every positive return. After eight years of economic stagnation and paltry progress, any return is certainly welcome.
Onward and upward! … 🇺🇸
John Dongler, econ artist, is that you?
I’ll take those guaranteed 2% returns as there are plenty of stocks that are in the loss column. I’m a conservative investor and I’ll take whatever I can get. Although Apple may be able to do better, it could also do worse. I definitely feel fortunate owning Apple stock. I’ve owned it since 2004 and I’m sure over that period of time Apple must practically at the top of the list of one of the top stocks to own in terms of gains.
What I do know is that my Apple dividends pay for ALL my monthly utilities with money left over and that’s very important me as a retired senior citizen. Apple doesn’t have share gains like Amazon, but Amazon doesn’t give dividends.
CitizenX.
It’s somewhat odd. Warren Buffet said he would like to see Apple stock go down in price so he could buy some more Apple stock at a reasonable price. I understand his position but what confuses me is how no one is asking for Amazon to go down in price to buy some more. Big investors keep buying boatloads of Amazon even with the price rising constantly. Why the difference in buying strategy? Does that mean that Amazon is much more highly valued than Apple because big investors are willing to pay practically anything for Amazon stock without question? That’s really cheapening Apple’s value in comparison to Amazon.
Apple may indeed be a strong company but I’m under the impression Amazon is exceedingly stronger as far as most of Wall Street is concerned.
What annoys me is that I can’t even tell what makes Amazon so much appealing as an investment than Apple. It doesn’t seem to be a fundamental value. I feel stupid because I can’t locate that particular metric I can measure to find that value. I feel as though I’m really missing some key to finding out if any particular stock has some huge potential.