Warren Buffett Raises His Stake in Apple as Carl Icahn Exits

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Warren Buffett Raises His Stake in Apple as Carl Icahn Exits PART 1 OF 3

Berkshire Hathaway Boosts Apple’s Stock by 3.7%

Berkshire Hathaway took a new stake in Apple

Apple’s (AAPL) stock price rose 3.7% on May 16, 2016, after Berkshire Hathaway (BRK) stated that it has taken a new stake in the company. It also stated that it has increased its position in IBM (IBM).

Berkshire Hathaway Boosts Apple&#8217;s Stock by 3.7%

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Berkshire Hathaway’s total holdings in Apple

On March 31, 2016, Berkshire Hathaway had 0.83% of its holdings in Apple. It has since taken a new stake worth $1 billion in Apple. The company’s total holdings in Apple stand at 9.8 million shares.

Apple reported its first quarter earnings on Tuesday, April 26, 2016. According to the company’s earnings report, there was a decline in iPhone sales and revenue. This was the first decline since 2003. The company’s sales fell 13% during the quarter.

On the other hand, billionaire investor Carl Icahn has exited his investment in Apple. He based his decision on increasing concern over China (FXI) (YINN) (ASHR). He thinks that China’s weakness is already hampering the stock’s price performance and will continue to hamper it in the future.

However, Berkshire Hathaway added a new position in the stock. This divergence between BRK and other billionaire investors adds concern about Apple’s future performance. In the next part of this series, we’ll analyze Berkshire Hathaway’s top holdings and whether its decision will provide a rally to Apple’s performance.


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