Count Warren Buffett as one of the Apple Inc. investors cheering Wednesday as the tech giant’s shares jumped almost 6% a day after posting a positive earnings report and outlook.
That’s because the billionaire chairman of Berkshire Hathaway Inc. BRK.B, -0.01%[1] likely made more than $2.6 billion in a single day as Apple shares spiked[2].
As of the end of March, Berkshire Hathaway held 239.6 million Apple shares AAPL, +5.89%[3] , according to FactSet data. Assuming it hasn’t sold any — Berkshire has been loading up on Apple[4], buying 75 million shares in the first quarter alone[5] — that’s a profit of about $8 billion in four months, and a $48 billion overall stake in Apple.
In May, Buffett — who’s worth about $84 billion [6]himself — told CNBC that he’s a big fan of the Cupertino, Calif., tech giant.
“It is an unbelievable company,” Buffett said[7]. “We like very much the economics of their activities. We like very much the management and the way they think.”
Apple shares have gained 19% year to date, and are up 34% from this time last year, compared to the Dow DJIA, -0.32%[8] , of which Apple is a component, which has gained 2.5% and 15%, respectively, over those time frames.
Apple is closing in on a trillion-dollar valuation. On Wednesday it updated its share count[9], revealing its market cap currently stands at $973.2 billion. To reach $1 trillion, its stock needs to rise from Wednesday’s closing price of $201.50 to at least $207.04....
References
- ^ BRK.B, -0.01% (www.marketwatch.com)
- ^ as Apple shares spiked (www.marketwatch.com)
- ^ AAPL, +5.89% (www.marketwatch.com)
- ^ loading up on Apple (www.marketwatch.com)
- ^ 75 million shares in the first quarter alone (www.marketwatch.com)
- ^ about $84 billion (www.forbes.com)
- ^ Buffett said (www.marketwatch.com)
- ^ DJIA, -0.32% (www.marketwatch.com)
- ^ it updated its share count (www.marketwatch.com)