The devotion portrayed by Warren Buffet towards Apple has caused him a high price. Berkshire Hathway of Buffet is the owner of nearly 252.5 million shares of Apple, thus the company is the 2nd biggest investor of Apple. This is Berkshire’s biggest share holding at 25.7%. On January 3, 2019, 10% of Apple’s shares have fallen. Thus, Berkshire’s shares also fell from $40 billion from the previous day to nearly $36 billion.
The first investment of Berkshire in Apple was done back in 2016. Buffet had its other major investment in IBM which did not quite earn him any favor in the stocks. Berkshire had long been out of the position of being one of the greatest holders of IBM. However, when it came to Apple, Buffet had always showed his support for the CEO Tim Cook and the company. Buffet had mentioned in August 2018, that for the next three months or even the entire next year, he was not thinking of iPhone sales. This is because he believed that there are there are many devoted iPhone users all over the world.
Buffet even regarded certain iPhone as terribly underpriced in spite of the fact that some of the latest ones cost more than $1000. Many now consider that the price is way too costly for emerging markets such as India or China. The largest investor in Apple with shares worth 340 million is Vanguard. Other big investors of Apple are State Street, Fidelity, and BlackRock. All of these share investors have suffered due to the losing sales and decreasing shares in the market. But it’s Berkshire whose shares have fallen 5%, which is quite a lot. It seems that Buffet’s faith in Apple is going to prove bad for his portfolio.
Berkshire has shares in the bank Wells Fargo which has recently faced wide disgrace for some of its illegal activities.