REUTERS / Rebecca Cook
- Warren Buffett’s Berkshire Hathaway has Apple shares and cash worth 52% of its total market capitalization.
- The billionaire investor company had $ 113 billion in Apple stock and $ 147 billion in cash at the last count, representing more than half of its $ 499 billion market cap.
- Berkshire’s market capitalization suggests that the rest of its business is worth less than $ 240 billion, even though it generated more than $ 250 billion in revenue last year.
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Warren Buffett’s Berkshire Hathaway had about $ 260 billion in cash and Apple stock in the last count, and represented a staggering 52% of its $ 499 billion market capitalization.
The famed investor’s conglomerate owned about 245 million Apple shares as of June 30, giving it a roughly 5.7% stake in the iPhone maker. Apple’s share price has risen about 57% this year to an all-time high, increasing the value of Berkshire’s position by more than $ 40 billion, to about $ 113 billion as of Tuesday.
Buffett’s company also posted a record $ 147 billion in cash and U.S. treasuries at the end of June, an increase of about $ 19 billion from the end of December.
Meanwhile, Berkshire’s share price is down about 9% this year, weighing on its market cap. By comparison, the S&P 500 and Nasdaq indices both closed at record highs on Wednesday.
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The outcome of Berkshire growing its cash stack and climbing its Apple stock while keeping its market cap depressed is that its cash and Apple shares are now worth more than half of the entire company.
Berkshire has also seen its rise since the end of June. It agreed to pay about $ 4 billion in cash for Dominion Energy’s natural gas assets, exploded about $ 2.1 billion to Bank of America in the three weeks to August 4, and in July roughly $ 2 billion of them to have purchased own stock.
That, however, would still leave it with about $ 139 billion in cash and a total of $ 252 billion in cash and Apple supplies, representing more than 50% of its market capitalization.
Berkshire’s market capitalization implies that without Apple’s shares and cash, the rest of its business would be worth less than $ 240 billion. That is unbelievable considering the massive scale and variety of their operations.
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Buffett’s company has scored companies including Geico, See’s Candies, Dairy Queen, Duracell, Fruit of the Loom, NetJets, Precision Castparts, PacifiCorp, MidAmerican Energy, the BNSF Railway, and Marmon, which owns more than 100 companies for companies for services and services has.
Berkshire also generated about $ 254 billion in revenue and $ 69 billion in pre-sales revenue last year, excluding a roughly $ 34 billion profit on its Apple stock and about $ 750 million in tech titan dividends.
In addition, Berkshire’s cash and Apple stock are shrinking and it still has $ 160 billion in net assets from around June 30.
Berkshire’s market cap does not appear to reflect its size, asset base and financial health. The company is exposed to the pandemic by its numerous insurance, manufacturing, retail, industrial and service companies, but its appreciation still seems to be detached from reality.
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