In a SEC 13F filing after the market closed on August 15, Berkshire Hathaway reported a 55% increase (about $500 million) in its Apple stake and a 27% reduction (about $1 billion) in its Wal-Mart holding. The Apple investment was likely made by Warren Buffett’s portfolio managers, Todd Combs or Ted Weschler. Wal-Mart has been an investment of Warren Buffett since 2005.
I am quoted in a Bloomberg article on these portfolio changes:
“Apple’s stock came down substantially in the second quarter,” David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business who has taken students to meet Buffett, said in a phone interview. “Value investors always like the price to go down because it gives them an opportunity to buy more.”
Many value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More