Buffett’s Apple Inc. Stock Cost Him An Average Of $99.49 A Share

0
Buffett’s Apple Inc. Stock Cost Him An Average Of $99.49 A Share
<a href="https://pixabay.com/users/ElisaRiva/">ElisaRiva</a> / Pixabay

Warren Buffett surprised many when he purchased nearly 10 million shares of Apple for just shy of a billion dollar investment last month. Warren Buffett is certainly one of the most, if not the most, successful value investors in the world. Hell, he nearly coined the phrase “value investing” and that means that Apple has grown up in his eyes and is a company that should be purchased and held for the future.

But Buffett never invests in tech companies

And that still remains the case. It appears the holding was begun by one of Buffett’s investment managers, either Ted Weschler or Todd Combs. The regulatory filing that Buffett’s Berkshire Hathaway filed which covered the trades showed that Berkshire purchased 9.81 million shares of the Cupertino giant for a sum of about $976 million and average share price of $99.49.

Canyon Distressed Opportunity Fund likes the backdrop for credit

CanyonThe Canyon Distressed Opportunity Fund III held its final closing on Jan. 1 with total commitments of $1.46 billion, calling half of its capital commitments so far. Canyon has about $26 billion in assets under management now. Q4 2020 hedge fund letters, conferences and more Positive backdrop for credit funds In their fourth-quarter letter to Read More


It should be said that Berkshire either got in too early or too late as Apple did drop to $89.47 in mid-May, which is almost exactly $10 less per share than the average paid by Buffett and Berkshire Hathaway.

Berkshire’s purchase was a bit of good news for a stock that hasn’t been performing well at the risk of understatement.

Buffett’s purchase of 981 million shares were made before March 14th without giving further details of when and for what prices, simply the average and Buffett didn’t comment on the purchase. It’s quite possible that Berkshire picked up more shares later as Apple continued its decline and that we will be reporting that in the coming months.

Buffett got in while Carl Icahn and David Tepper’s Appaloosa Management were dumping their holdings in Apple.

It’s no secret that iPhone sales are the engine that powers Apple and the first quarterly decline in iPhone sales since its introduction is responsible for the stock’s decline. There appears to be no end in sight at this point as analysis are already predicting poor sales for the yet released iPhone 7 owing to only minor upgrades on the iPhone 6S, or so we’re led to believe.

In May, the earlier purchases by Berkshire made it Apple’s 56th largest shareholder.

Previous article U.S. Core-Middle-Market Buyout Multiples Slide
Next article Goldman Sachs: If Treasury yields rose by 1 %, US$1 trillion would be wiped out
While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at [email protected]</i>

No posts to display