Apple Stock Spikes on Buffett Stake
Berkshire disclosed this morning a holding of 9.81 million AAPL shares, worth roughly $1.07 billion. The conglomerate reported the new investment – which may have been made with money from the entire sale of AT&T Inc (T) stock – in a regulatory filing of all its holdings as of March 31. The filing also showed that Berkshire increased its stake in IBM (IBM) by 198,853 shares to 81.2 million shares. Today is the last day for funds to disclose their trades as of the end of 1Q16 to the U.S. Securities and Exchange Commission.
Buffett, who has traditionally stayed away from the tech sector, is longing AAPL stock at a time when investors’ concerns about the tech giant’s slowing growth and lack of innovation continues to persist. Another concern is that of Cupetino’s dismal 2Q16 earnings report in late April, in which slowing iPhone sales led to the company’s first quarter of lower revenue in 13 years. The stock has plunged over 13% since to a near 48 month low. AAPL currently prints a one year loss of 28.36%. The stock is trading at $92.06 a share on Monday.
Buffett’s entrance into Apple stock follows the exit of hedge fund manager David Tepper, who at one point owned 1.26 million shares in Apple, worth about $133 million. Tepper’s exit out of Apple follows that of billionaire investor Carl Icahn who said in April that he no longer holds any Apple stock.
Icahn once owned nearly 1 percent of Apple’s outstanding shares.