Legendary investor Warren Buffett Buys a huge stake in Apple, as the stock price hovers around $90 a share
Legendary investor Warren Buffett, said that his investing company, Berkshire Hathaway, has purchased almost 9.9 million shares of Apple (AAPL) stock.
This seems to be the first time Warren Buffett has ever invested in the tech company. Buffet purchased the stock at approximately $109 a share in the first quarter. Unfortunately for Buffet, the value of this investment has dropped a bit with the slowdown of Apple in general, that we talked about here. The original value of Buffett’s investment was close to about $1 billion dollars. Since Apple stock prices have dropped to just about $90 dollars a share, Berkshire Hathaway’s shares of Apple is now worth short of $900 million.
Apple stock shares climb out of the hole a bit after Warren Buffett buys a large stake
With the news of this share acquisition, Apple stock price has rebounded a bit, once again putting it ahead of Google‘s parent company, Alphabet, into the most valued Company on the planet. The two tech giants have been going back and forth for months to see who is the bigger company in market cap size. This is the second major purchase by Berkshire Hathaway, which has recently grown its stake in computer company IBM. Berkshire Hathaway is also supposedly looking at a takeover of Yahoo, which is now considered a subpar company. Warren Buffett’s company also has holdings in various companies from Coca-Cola, American Express, Kraft Heinz, and Wells Fargo. News has recently broke that fellow billionaire investor, Carl Icahn, has sold its entire portfolio of Apple, which we talked about here.
In similar news, Apple has reportedly invested $1 billion in a Chinese ridesharing service similar to Uber, which we also talked about here.
Apple shares hover around a 2-year low amid concerns in China and shrinking market share. Major investors are dumping large blocks of APPL shares.
Within the last few months a few major investors have made the news by dumping huge blocks of Apple stock shares over various issues.
The first investor to make the news by dumping most of his Apple stock was billionaire Carl Icahn, who blamed Apple’s tepid relationship with China has the basis for selling his stake in Apple. The second high-profile investor, billionaire David Tepper has come forward by dumping his entire share of Apple as well–that’s a cool 1.26 million shares. Lastly, David Einhorn of Greenlight Capital has also been dumping shares of Apple for awhile. There will most likely be more investors dropping shares in Apple as the share price falls to new lows amid concerns with China, slow iPhone and iPad sales and lack of diversification in other markets.
The worry sets in over Apple’s future and Apple Stock
Investors are growing more worrisome over the decline of apple shares, as they dipped below $90 a share for the first time in two years. The current market valuation for Apple is about $494 billion. Once again, Google‘s parent company, Alphabet, topped Apple as the world’s most desired brand with its market cap of about $498 billion. The two companies have been sparring back-and-forth lately trying to capture this coveted spot. Nobody can predict if Apple’s recent $1 billion investment into a Chinese ridesharing service will help bring investors back. As we mentioned in a recent article, Apple needs to change quite a few things to continue its status as an innovative and progressive technology company.