Warren Buffett on Apple
In our earlier series, we saw that Warren Buffett has been gradually increasing his firm’s position in Apple since 2Q16. In 3Q17, Apple represented nearly 11.6% of the firm’s portfolio. The firm added 3.9 million shares in Apple in 3Q17.
According to the institutional ownership report, Buffett’s Berkshire Hathaway is the fifth largest investor in Apple in 3Q17 with 134 million shares. Vanguard Group was the largest investor in Apple in 3Q17 with 344.5 million shares. Apple is the third largest holding in Berkshire Hathaway’s portfolio.
Apple has had a strong performance in the past few years. On a year-to-date basis, the stock has returned nearly 46% as of November 15, 2017. In the last one year, the stock returned nearly 56%. The Technology Select Sector SPDR ETF (XLK), which tracks the performance of the technology sector (COMP-INDEX) of the US (SPY) (SPX-INDEX), rose nearly 30% on a year-to-date basis as of November 15, 2017.
Apple showed a strong performance for the quarter ended on September 30, 2017. The strong performances in all three quarters of 2017 have increased investors’ confidence in the stock. The growing market capitalization of this stock is a positive sign for investors. Analysts expect the company could reach $1 trillion within 2018.
In the next part of this series, we’ll analyze Warren Buffett’s position in IBM.