REUTERS / Rick Wilking
- Warren Buffett’s Berkshire Hathaway has reported a $ 87 billion profit on its Apple investment, a larger sum than both companies were worth 20 years ago.
- Apple’s market capitalization was less than $ 87 billion in March 2009, while Berkshire’s market cap in October 2000 was below that level.
- Apple’s market cap is now more than $ 2.1 trillion, while Berkshire’s market cap is close to $ 500 billion.
- Berkshire’s massive Apple profit marks the breathtaking rise in the iPhone maker’s share price.
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Warren Buffett’s Berkshire Hathaway has made more money on Apple in four years than both companies were worth 20 years ago.
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.
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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. Apple’s profit from the company is also above the personal net worth of $ 78 billion more than Buffett at the last count.
The value of Berkshire’s Apple stake is striking, as the iPhone maker is just one of 41 holdings in its stock portfolio, which at the end of June was worth more than $ 200 billion.
On top of its equity investments, Berkshire also has scores of companies including Geico, See’s Candies, and the BNSF Railway, and operates in multiple sectors, including insurance, manufacturing, utilities and retail.
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