16 May, AtoZForex, Vilnius – Today, Warren Buffett’s firm Berkshire Hathaway revealed to have purchased over 9.8 million Apple shares (AAPL) in the first quarter of 2016. In total, this estimate is worth $1.07 billion. As Warren Buffett buys Apple stocks for the first time, last week the share prices dipped below $90 for a brief period. Marking the lowest level in almost two years.
It’s a remarkable move by the oracle of Omaha, considering that for years Berkshire Hathaway stayed away from purchasing technology investments. According to the US Securities and Exchange Commission (SEC), Berkshire Hathaway also increased its IBM stake with 198,853 shares. The new filings of SEC reveal that Berkshire Hathaway now possesses over 81.2 billion IBM shares. Berkshire portfolio managers, Ted Weschler and Todd Combs made the investments for both Apple shares and IBM shares.
Warren Buffett’s earlier attempt
Back in 2013, the oracle of Omaha was tempted to purchase Apple stocks. At the time, he believed that the CEO of Apple, Tim Cook would buy back lots of shares to build value. Yet, the oracle of Omaha never came around and made the decision. He did admit that Apple was possibly carrying “too much cash” at that time, but eventually evaluated the case as:
“Obviously, if you look back on any stock that went up a lot and you say we should’ve bought the stock. But we don’t think that way. We buy businesses we think we understand at prices that we like, and then we hold it for a long time. We usually make money, but not always.”
Carl Icahn sold all Apple shares
As Warren Buffett buys Apple stocks, last month Carl Icahn has sold all of his Apple shares. Based on the concerns of the Chinse economy and government. Despite the move of Carl Icahn, Warren Buffett now owns a stake in Apple. Remarkably, the oracle of Omaha doesn’t even possess over a smartphone. In response to the release of this news, the AAPL shares went up almost 2 percent today. Meanwhile, the shares of IBM declined about 1.8 percent.
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