Markets

Raging Bull: Buffett’s Berkshire Almost Quadrupled Its Stake In Apple Inc. (AAPL)

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Warren Buffett is ultra-bullish on Apple Inc. ( AAPL ), as he nearly quadrupled his holdings in the stock .

By the end of the year, Buffett's Berkshire Hathaway Inc. ( BRK.A , BRK.B )held about 57 million shares, an increase from 15 million shares in the third quarter, according to a regulatory filing on Tuesday. The firm's total stake in the iPhone maker stood at approximately $6.6 billion as of December 31.

Buffett Bullish on Apple

Apple shares, which have rallied 42% in the last 12 months, surged to a new high on Tuesday and continued to move ahead on Wednesday, exhibiting rising interest among investors. If Buffett did not make any alteration to his positions since the end of the last year, it is now worth a whopping $7.7 billion, according to Forbes.

Buffett's rising interest in Apple does come as a surprise, considering his reluctance towards technology stocks, which, according to him, are outside his zone of competence, except for International Business Machines Corp. ( IBM ).

However, Berkshire has etched its name among the top 10 biggest Apple investors after accumulating the stock recently, according to Reuters .

Thomas Russo, who oversees $11 billion in assets at Gardner Russo & Gardner in Lancaster, told Reuters, "I'm stunned to see the size of that Apple position. It's quite possible that Warren woke up and began to understand the virtues of Apple that he had been neglecting or, like with Precision Castparts, Todd or Ted had an affinity for Apple that sparked interest from Warren."

Buffett started building a position in the stock last year when the market turned bearish on it due to sluggish iPhone sales and declining revenue. He added 9.8 million shares worth $1.1 billion.

Buffett is Upbeat on Airlines, Too

Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc ( AAL ), Delta Airlines, Inc. ( DAL ) and United Continental Holdings Inc ( UAL ).

Additionally, it added a stake in Southwest Airlines Co ( LUV ) during the quarter, according to regulatory filings. Buffett has also taken a position in Monsanto Company ( MON ) and Sirius XM Holdings Inc ( SIRI ), notes Forbes .

On the other hand, Berkshire has reduced its holdings in Wal-Mart Stores Inc ( WMT ) from 12.9 million shares to 1.4 million shares. Buffett , who is not so bullish on technology companies, is currently the second richest person in the world, with a net worth of about $74.9 billion, according to Forbes' estimate.

Major Berkshire investments such as Wells Fargo & Co ( WFC ), The Coca-Cola Co ( KO ) and IBM are Buffett's ideas, but the 86-year-old has given more responsibility to Todd Combs and Ted Weschler in recent years.

Year to date, AAPL stock is up almost 17%, while in the last six months, it is up almost 25%.

The post Buffett's Berkshire Almost Quadrupled Its Stake In Apple Inc. appeared first on ValueWalk .

Many academics claim investing is a "random walk." We believe this to be only partially true. It is our core belief that value investing can outperform the market, hence the name "ValueWalk." Your number one source for breaking news and evergreen content on everything value investing and hedge funds.

Check out our new free Underrated Small Cap Stocks newsletter

Also Sign Up For Our Free Newsletter and receive in-depth ebooks on famous investors

More From InvestorPlace

The post Raging Bull: Buffett's Berkshire Almost Quadrupled Its Stake In Apple Inc. (AAPL) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SIRI IBM AAL AAPL DAL

Other Topics

Stocks

Latest Markets Videos

    InvestorPlace

    InvestorPlace is one of America’s largest, longest-standing independent financial research firms. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers.

    Learn More