Investor Warren Buffett’s stake in Apple has tripled to over $ 100 billion Business insider.
Berkshire Hathaway’s CEO spent $ 35 billion on 2019 to buy 250 million Apple shares between 2016 and 2018, according to his letter to shareholders. Buffett has since sold some of his Apple holdings and most recently owned 245 million shares worth more than $ 104 billion.
Apple’s third quarter earnings lifted Friday’s share price by 10 percent to an all-time intraday high of $ 425. Apple increased its market cap to over $ 1.8 trillion, making it the most valuable company in the world. Both sales and earnings per share were also records in the June quarter.
Apple’s share price fell to $ 224 in March as concerns about the global health crisis increased. Since then, however, it has recovered strongly and has risen by over 80 percent in the past four months. Many other major technology companies such as Amazon, Microsoft and Google’s parent company Alphabet have seen similar increases. Apple stock has risen by around 42% this year, increasing Buffett’s stake by $ 30 billion in the past seven months alone.
Apple is the largest stake in Berkshire Hathaway’s portfolio and worth more than four times the second largest stake. a $ 25 billion stake in Bank of America. Berkshire Hathaway’s market cap is currently around $ 476 billion, indicating that the 5.7% stake in Apple accounts for more than a fifth of its total value.
The value of the company’s Apple stake in relation to the rest of its portfolio shows how investors increasingly favor technology companies and neglect more traditional companies such as banks and insurers.