Berkshire Hathaway has made around $358 million on Apple
Warren Buffett’s Berkshire Hathaway (BRK-B) has made around $358.6 million (on paper) on its large investment in Apple (AAPL).
On Tuesday evening, Apple smashed Wall Street analysts’ earning expectations and surpassed estimates for iPhone sales. The tech giant’s stock was last trading up around 5.3%, up $6.43, at $127.78 per share.
Assuming Berkshire hasn’t bought or sold shares in the past four months, its position in Apple—which is over 15.22 million shares—is currently valued at $1.94 billion.
Berkshire Hathaway, which has historically avoided investing in technology companies, snapped up a large position in Apple stock last year. Berkshire Hathaway began building the position during the first quarter of 2016, buying just over 9.8 million shares, a regulatory filing posted last May showed. The average purchase price is unclear. During the second quarter, Berkshire Hathaway increased its position by 55%, adding more than 5.4 million more shares. The position was unchanged during the third quarter. Data for the fourth quarter is not yet available.
Back in November, Buffett was asked at an event for undergraduate and graduate students in Omaha why he doesn’t invest in technology companies.
The “Oracle of Omaha” hinted that his investment deputies— Ted Weschler and Todd Combs— are responsible for buying Apple, according to notes posted by Dr. David Kass, a professor of finance at the University of Maryland’s Robert H. Smith School of Business:
“Ted (Weschler) and Todd (Combs) each have about $9 billion to invest. One or more invested in Apple. With Apple, people get hooked on things that they like. [Buffett] has a competitive edge within his circle of competence (which does not include tech companies). His circle grows wider over time but outside of his circle tech people know better than he does. [Buffett] mentioned that he did not invest in Microsoft even though it had no cost of goods sold and was earning a ‘royalty on the world’ since the world needed its operating system.”
Buffett said in an interview with Charlie Rose that aired on Friday that he bought $12 billion worth of stock since Donald J. Trump won the election. He didn’t name the stocks. Regulatory filings for the fourth quarter are expected to come out in mid-February.
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Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.
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