Why Warren Buffett ‘Never Sold a Share’ of Apple
Warren Buffett on Apple
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Buffett said in the interview, “I’ve never sold a share. I certainly was buying last quarter and I don’t pay attention to the calendar when I’m buying.” His firm, Berkshire Hathaway (BRK.B), is the fifth-largest investor in Apple with 130.2 million shares as of June 30, 2017, according to the institutional ownership report.
Apple is the third-largest holding of Berkshire Hathaway. It represents nearly 11.6% of the firm’s portfolio as of June 30, 2017. Buffett made his first investment in Apple in 2016. Apple (AAPL) stock rose 3.7% on May 16, 2016, after Berkshire Hathaway (BRK) stated that it has taken a new stake in the company. Since then, the company has gradually been adding Apple shares to its portfolio.
However, another billionaire investor, Carl Icahn, exited some of his position in Apple in April 2016 since he was concerned about Apple’s future performance, mainly due to China’s economic slowdown and Apple’s weaker earnings for the quarter ended March 2016.
The recent statement provided by Buffett seems to indicate that he is more optimistic about Apple’s future performance. Apple stock has risen nearly 41.0% on a year-to-date basis as of September 4, 2017. In the last five years, the stock has risen nearly 93.0%. The technology sector has done very well so far this year. The Technology Select Sector SPDR ETF (XLK), which tracks the performance of the US (SPY) (QQQ) technology sector, has risen nearly 20.5% on a year-to-date basis as of September 4, 2017.
In the next part of this series, we’ll analyze Buffett’s view on US economic growth.