Warren Buffett's Berkshire Hathaway continues to increase its stake in Apple stock, adding 333,856 shares in Q4 2022.
Warren Buffett. Image credit: Berkshire Hathaway
A 13-F filing with the Securities and Exchange Commission on Tuesday reveals Buffett's holding company purchased even more Appel stock. Apple is among its largest holdings alongside Bank of America, Coca-Cola, and American Express.
The filing was shared by StreetInsider, which stated that Berkshire Hathaway added 333,856 shares of Apple in Q4 of 2022, bringing its total stake to 895,136,175 shares. That is worth $137 billion.
Buffet's relationship with Apple has been strong since he made his first major stake in the company in 2016. He made an initial investment of about $1.07 billion, or about 9.81 million shares at the time.
Though the holding company has sold some shares from time to time, Apple slowly grew to be among its biggest investments. Its stake had earned over $100 billion by August 2020.
Warren Buffet famously didn't own any major tech stocks until Apple, and since, he's been publicly complimenting CEO Tim Cook's leadership. Apple even debuted a whimsical paper delivery game called "Warren Buffett's Paper Wizard."
The investments in Apple have paid off for Buffet and Berkshire Hathaway. It was reported in March 2022 that Buffet had earned more than $100B from holding Apple shares since 2016.
Berkshire's Apple share total should be 915,560,382 rather than 895,136,175.
Most of the Apple shares held by Berkshire and its subsidiaries get reported on the 13-F for the institutional manager Berkshire Hathaway Inc - i.e., the one referred to in the OP. But around 20 million shares, those held by the Berkshire subsidiary Gen Re Corporation, get reported on a different 13-F for the institutional manager New England Asset Management Inc.
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Now, delving into the details of the article about Warren Buffett's Berkshire Hathaway increasing its stake in Apple, it's essential to grasp several key concepts:
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Berkshire Hathaway's Investment Strategy:
- Berkshire Hathaway, led by Warren Buffett, is renowned for its long-term investment strategy. This approach involves holding substantial stakes in companies that exhibit strong fundamentals and have the potential for sustained growth.
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Apple as a Core Holding:
- The article highlights Apple as one of Berkshire Hathaway's significant holdings, alongside other major companies such as Bank of America, Coca-Cola, and American Express. This suggests a diversified investment portfolio.
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Quantifying the Stake Increase:
- The 13-F filing with the Securities and Exchange Commission (SEC) is a crucial document in the investment world. It discloses institutional holdings, providing transparency to investors. In Q4 2022, Berkshire Hathaway added 333,856 shares of Apple, totaling 895,136,175 shares, valued at $137 billion.
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Berkshire's Historical Relationship with Apple:
- Buffett's association with Apple dates back to 2016 when he made an initial investment of $1.07 billion, comprising approximately 9.81 million shares. Over time, despite occasional share sales, Apple has evolved into one of Berkshire Hathaway's major investments.
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Financial Gains from Apple Investment:
- By March 2022, it was reported that Warren Buffett had earned more than $100 billion from holding Apple shares since the initial investment in 2016. This underscores the success of Berkshire Hathaway's strategic move into the technology sector.
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Buffett's Appreciation of Apple's Leadership:
- The article mentions Warren Buffett's public commendation of Apple CEO Tim Cook's leadership. This speaks to the importance of strong management in Berkshire Hathaway's investment decisions.
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Unique Investment in Tech Stocks:
- Warren Buffett, traditionally known for avoiding major tech stocks, made an exception with Apple. This decision reflects the adaptability of Berkshire Hathaway's investment strategy to changing market dynamics.
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Reporting Discrepancy on Berkshire's Apple Shares:
- The article notes a discrepancy in the reported number of Apple shares held by Berkshire Hathaway. While the 13-F filing suggests 895,136,175 shares, the correct total, including shares held by subsidiaries like Gen Re Corporation, should be 915,560,382.
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Different 13-F Filings for Subsidiaries:
- The article mentions that around 20 million Apple shares held by the Berkshire subsidiary Gen Re Corporation are reported on a different 13-F filing for the institutional manager New England Asset Management Inc. This highlights the complexity of reporting structures for diversified investment portfolios.
In conclusion, Warren Buffett's ongoing interest in Apple, the strategic decisions reflected in Berkshire Hathaway's investment portfolio, and the intricacies of reporting structures contribute to a nuanced understanding of this financial news.
