Warren Buffett has gone from an AAPL skeptic to a massive investor in the Cupertino business. Because AAPL is set to break $ 500 this morning, a new report today summarized just how successful that investment has been in one sentence …
Here’s how Business Insider’s Theron Mohamed puts it:
Warren Buffett’s Berkshire Hathaway has made more money on Apple in four years than both companies were worth 20 years ago.
Here’s how it was calculated:
The famed investor conglomerate spent about $ 35 billion buying about 245 million Apple shares between 2016 and 2018. Its 5.7% stake in tech titan was worth about $ 122 billion up close as of Friday, which means it has a profit of $ 87 billion so far.
Apple’s market cap fell below $ 70 billion during the financial crisis, and only returned to the north $ 87 billion in March 2009, according to YCharts. It has since slowed more than 20-fold to a record $ 2.1 trillion on Friday.
Meanwhile, Berkshire’s market cap was less than $ 87 billion as recently as October 2000, compared to nearly $ 500 billion today, according to data from YCharts.
For a long time, Buffett did not invest much in AAPL because he said the future of the company was too unpredictable.
We loved very few [AAPL shares] in the past and we will probably keep quite a few in the future. Coca-Cola is very easy for me to conclude on what it will look like economically in five or 10 years, and it is not easy for me to come to a conclusion about Apple.
He changed his mind in 2016, with a $ 1 billion investment. He later said that although he had originally thought of AAPL as a tech stock, he now simply sees it as a very popular brand with enormously loyal customers. Earlier this year, he said that Apple’s probably the best company I know in the world. ‘
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