Warren Buffett’s Berkshire Hathaway takes new $1 billion stake in Apple

“Warren Buffett’s Berkshire Hathaway has taken a new stake in Apple and upped its holdings in IBM, according to a Securities and Exchange Commission filing Monday,” CNBC reports.

“Berkshire’s new stake in Apple totaled 9.8 million shares, while the company boosted its shares of IBM by 198,853 to 81.2 million shares,” CNBC reports. “Shares of Apple rose 2 percent in premarket trading immediately following the report. IBM’s stock was down 1.8 percent.”

CNBC reports, “The changes in the company’s holdings are as of March 31, 2016 and compared with the previous quarter ended as of December 31, 2015.”

Read more in the full article here.

MacDailyNews Take: Wow! Buffett’s Berkshire Hathaway has long been notoriously tech averse, so this should be a very clear sign to all that Apple is severely undervalued.

“Mr. Buffett, who for years had avoided technology stocks, previously professed to not understand the sector and has argued that it is difficult to defend the competitive advantages of the companies,” Lauren Pollock reports for The Wall Street Journal. “In Apple, Mr. Buffett likely saw a buying opportunity as the shares are off sharply from last summer’s highs…”

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26 Comments

    1. “Smile when you read a headline that says ‘Investors lose as market falls.’ Edit it in your mind to ‘Disinvestors lose as market falls — but investors gain.’ Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other.”

      Warren Buffet

    1. Becuase Buffet is a truly INDEPENDENT and smart investor who put’s his money wher his mouth is and has a record of making prudent investments.

            1. IBM is a ‘good’ patent troll. The establish an industry, dominate it, patent it to it’s limits, then sell it off at it’s peak to the Chinese, and move on to the next sector. They then live off the patent royalties. Not a bad business model.

  1. Buffett invests for the longer term, was wistful that he did not pick up APPL several years ago; this is a clear indication that he believes APPL is good value and also an established long term bet, based on the fundamentals of Apple inc.

    Let’s see the moronic talking heads on CNBC and Bloomberg, together with various financial analysts try and put a negative spin on Warren Buffett’s business acumen here!!

    Go APPL!!

    1. The CNBC commentary was pretty interesting. Cramer (I know, I know…) was ragging on Tony Sacconaghi and Bernstein for diminishing AAPL yet praising AMZN, giving a free pass to its astronomical P/E of eleventy-seven hundred. So far, the CNBC discussion was positive about Buffet’s associates who actually made the purchase decision as well as increasing the stake in IBM (with which Apple has a partnership). Overall, the Berkshire purchase should help Apple out of the slump.

    1. It’s a big gamble but … between a well-known investor who puts his money where his mouth is, and a sullen slacker with the definitive list of Apple failings, and a guy who has apple fanboy’s number (:zero) … I can’t make up my mind … Bring the 3 guys together, maybe Mr Buffett would learn something from Joe, or Mike, and he still has time to back out of that AAPL buy.

  2. AAPL proves that investing based upon only PE ratio is doofus.
    Buffet can see that Apple, even if they don’t reinvent the wheel again, is still around and competitive longterm. Keep in mind that AAPL isn’t down due to a better competitive product…they are just down because they haven’t blown our minds lately. Buffet sees their competitive edge is still there and is safe to say that if anyone is gonna invent something that is the next hang the moon iPhone, it is going to be Apple. Buffet has always bought on dips and usually sits a long time…dividends sure don’t hurt any of us, regardless of the greedy complaining of how low it is. Apple needs loyal long term believers/investors to its core and not those that push it off a cliff in a blink.

  3. History will prove that Buffet, longterm, kicked Carl Icahn’s butt bigtime using simple patient conventional wisdom.
    Those who sold AAPL on negative headlines…don’t quit your day job.

  4. I bought AAPL after the overt attack on Apple’s sales numbers. Thanks for making me some money Icahn.

    Once I learned that Buffet owned CNI and that is why the Dems were stopping Keystone pipeline. I bought CNI. Time to buy Heinz.

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