On January 28, Warren Buffett-backed Berkshire Hathaway rose by a whopping $9.8 billion with Apple stock rising on a strong earnings report.
The value of Berkshire Hathaway’s holdings in Apple rose by $9.8 billion on January 28 as Apple stock increased about 7 percent on a strong earnings report.
Earlier this week, Apple reported December quarter earnings. The Cupertino-based tech behemoth posted almost $124 billion in sales and a significant sales growth in nearly every product line except for iPad, CNBC reported.
Moreover, investors expressed interest in CEO Tim Cook’s remarks about notable improvements in challenges related to the supply chain crisis.
Warren Buffett-backed Berkshire Hathaway Notches $9.8 billion In Gains
Warren Buffett’s Berkshire Hathaway started to amass Apple stock back in 2016. Now, it owns a staggering 887,136,000 shares of the tech giant. This converts roughly to about 5 percent of Apple’s outstanding stock, according to FactSet data.
Buffett initially considered high-flying tech investments to be very risky for Berkshire Hathaway. However, being one of the biggest supporters of Apple since 2016, he started buying Apple shares.
Now, Apple makes more than 40 percent of Berkshire Hathaway’s portfolio. Furthermore, Buffett has deemed the dividends Apple regularly issues as attractive under his investing philosophy.
Warren Buffett Talks About His Apple Investment
In an interview with CNBC in 2020, Buffett said, “I don’t think of Apple as a stock. I think of it as our third business.”
He went on to describe it as “probably the best business I know in the world.” Moreover, Buffett argued that Apple’s iPhone ecosystem is “sticky” and urges customers to upgrade regularly, making it a safer investment.
Also, Buffett said Apple is more like a consumer company than a tech company. Apple’s chief executive has praised Berkshire’s investment in Apple.
“We run the company for the long term. And so the fact that we’ve got the ultimate long-term investor in the stock is incredible,” Cook told CNBC in 2019.
