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Warren Buffett's Berkshire Hathaway makes a huge bet on Apple

06 May, 2018, 03:27 | Author: Shawna Walton
  • Taking care of business - BH style

Incidentally, Buffett's Berkshire Hathaway now owns 240 million shares of Apple, giving the company a $42.5 billion stake in the Cupertino-based company.

Berkshire's initial investment in Apple was small, suggesting it was made by one of Mr. Buffett's investment deputies.

Now, after the additional share purchases and an 8% rise in price since the start of the year, the firm's stake is worth more than $44bn.

Investors are hungry for more details about the timing of Buffett's departure, as well as whether the two executives on the fast track to replace him will be introduced in a public way to Berkshire shareholders at the high-profile event.

Billionaire Warren Buffett says Wells Fargo is cleaning up its act after the misconduct at the bank in recent years.

The "requirement will produce some truly wild and capricious swings in our GAAP bottom line", Buffett said in his annual letter to shareholders released in February.

During the traditional Q&A session at Berkshire Hathaway's annual meeting, a shareholder challenged Buffett on his refusal to pressure Berkshire subsidiaries to divest from gun-related businesses. Moreover, he also said that if you look at the company, it probably earns almost twice as much as the 2nd most profitable firm in the US.

Buffett's Apple commitment over the past two years has surprised many, given his historical aversion to companies associated with the technology sector.

Billionaire investor Warren Buffett touted the importance of trade between the US and China, the benefits of which are too huge for either economic behemoth to do something "extremely foolish".

"It gets me first place in the queue, I think when people go to so much effort it shows Warren how important he is for us", Robertson said.

Is it a good thing or a bad thing if Warren Buffett becomes your top shareholder?

Shares in Apple, already the world's most valuable company, rose by nearly 4% on Friday to more than $183.7 each.

But Berkshire also ended a long stretch of disappointing operating performance, posting record operating profit as insurance rebounded from a hard quarter while economic growth bolstered results in railroad, industrial and consumer businesses.

At the end of 2017, Berkshire was sitting on roughly $116 billion in cash that can be used to acquire other companies.

Shanahan, the Edward Jones analyst, said Berkshire could wind up reported a loss in net income during the quarter because of the accounting change even though the loss would mostly be on paper because Berkshire doesn't often sell its stocks. The shares closed up 3.9% at $183.83 on Friday.

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