Buffett's Berkshire Takes $1 Billion Position in Apple
May 16 2016 - 8:50AM
Dow Jones News
Warren Buffett's Berkshire Hathaway Inc. took a new stake in
Apple Inc. in the first quarter, a move that comes as the
technology giant's shares have been battered amid a slowdown in
iPhone sales.
The legendary investor's firm reported owning 9.81 million
shares of Apple as of March 31, valued at about $1.07 billion.
Mr. Buffettt likely saw a buying opportunity as Apple shares are
off sharply from last summer's highs as the company struggles to
maintain the sales surge that followed the introduction of its
larger-screen smartphones in late 2014. The 2015 successors to
those initial big-display models haven't garnered as much
enthusiasm from consumers.
Apple shares traded above $130 a share last July and ended the
first quarter at $108.99. But they have since dropped further as
the company reported its first revenue decline since 2003 last
month.
Mr. Buffett's positions were disclosed in a 13F filing with the
Securities and Exchange Commission, a quarterly requirement for
investors managing more than $100 million. The report indicates the
number of shares held and the value of each stake at the end of the
quarter, so it isn't clear if Mr. Buffett has continued buying the
shares since the quarter ended.
Apple shares, meanwhile, got a bounce premarket on his
investment, rising 2.1% to $92.49.
Mr. Buffett's investment in Apple follows the exit of another
activist, Carl Icahn, who said last month he had sold his big
position.
Berkshire, which for years had avoided technology stocks, also
increased its position in International Business Machines Corp. by
198,853 shares. He first bought IBM stock in 2011, making an
investment worth more than $10 billion.
IBM is one of Mr. Buffett's big four investments, along with
Kraft Heinz Co., Wells Fargo & Co. and Coca-Cola Co. Those
three positions were unchanged in the first quarter.
Berkshire, however, eliminated his position in AT&T Inc.
Write to Lauren Pollock at lauren.pollock@wsj.com
(END) Dow Jones Newswires
May 16, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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