Warren Buffett’s Berkshire Hathaway firm has massively increased its AAPL holdings, while ditching virtually all its IBM stock, showing how confident the super investor is of Apple’s immediate future.
Buffett’s firm increased its Apple holdings by 23.3 percent to 165.3 million shares, according to SEC filings. The firm took a dimmer view of IBM, however, and made the decision to drop a massive 94.5 percent of its holdings, leaving it with just 2.05 million shares.
While IBM’s revenue has just grown for the first time in 23 quarters, Buffett’s firm is clearly a whole lot more optimistic about Apple (which, ironically, has faced a bit of damaging media fallout lately, thanks to security issues and battery replacements.) Before the acquisition, Berkshire was already Apple’s fourth-largest shareholder.
Warren Buffett has historically steered clear of technology stocks. However, he has made an exception for Apple, and has been pleased to sing its praises even at times when it has seemingly experienced short-term difficulties. This has sometimes resulted in the the “Warren Buffett effect” on share prices, where Buffett’s confidence in Apple has helped convince other shareholders who may be a bit jumpier.
When it comes to being outspoken about changing Apple’s course, Buffett is far less of an activist investor than the likes of Carl Icahn. Icahn made over $3.4 billion investing in the company a few years back — only to cash out his entire Apple stake, claiming that he was worried about the impact that China could have on it.
Do you agree with Buffett’s optimism about Apple? Let us know your thoughts in the comments below.