The famous billionaire dropped a bomb on CNBC yesterday. His conglomerate has increased its stake in Apple from 165.3 million to 240.3 million shares and therefore becomes the third biggest shareholder of Tim Cooks tech giant. The announcement comes right on time for Berkshire as it occurs the day before its annual shareholder meeting held in Omaha, Nebraska and the publication of its Q1 results.
Berkshire's stock dropped by about 4% since the beginning of the year, whereas the Dow Jones only gave up 3.2%. The decline of the banking sector a huge part of its stakes - could explain this underperformance. In the meantime, Apple is up by 5.2%.
Obvious outperformance of Buffetts investment strategy (Berkshire vs. Dow Jones)
Apples golden age
Buffett praised the iPhone manufacturer by saying it is an unbelievable company, quite an unusual statement coming from one of the world's best investment specialists. During the first three months of the year, Apple defied the odds when it announced a rising turnover earlier this week, fueled by the growth of its smartphone sales in a market that becomes increasingly saturated. Warren Buffet showed he knew once again what was lying ahead and Apple is now by far the biggest position in his investment portfolio. On December the 31st last year, it was still Wells Fargo that ranked first in Buffett's portfolio, but the sharp decline of the US bank in the first quarter of 2018 has strongly decreased its value. Thanks to the additional investment announced yesterday, Apple is now clearly the number one bet of the Omaha Oracle.