Warren Buffett’s strike at Apple approaches a quarter of Berkshire Hathaway’s total market value

Warren Buffett’s $ 113 billion stake in Apple approaches a quarter of its investment firm Berkshire Hathaway’s full market value, according to Business Insider. Apple and cash add up to Berkshire Hathaway’s $ 147 billion in cash, and more than half of the company’s market value.

Berkshire Hathaway held about $ 260 billion in cash and Apple stock last year, accounting for 52% of its $ 499 billion market capitalization, with Apple alone accounting for about 22.5% of Berkshire Hathaway’s market capitalization. Berkshire Hathaway’s share price is down about 9% this year, even though Apple’s share price has gone up by 50%, increasing the impact of heavyweight cash and Apple holdings.

Taking over Apple’s shares and cash, the rest of Berkshire Hathaway is valued by the market at just $ 240 billion, which is surprising considering the scale of Berkshire Hathaway’s operations. The company has many 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 own more than 100 companies for production. and services has.

Warren Buffett held 245 million Apple shares at the end of June, representing a 5.7% stake in Apple as a whole. Apple’s share price has risen more than 57% this year to an all-time high, raising the value of Berkshire’s Apple holdings by more than $ 40 billion yesterday to $ 113 billion yesterday. Apple is by far the largest investment in Berkshire Hathaway’s portfolio, worth more than four times as much as its one to one largest holding, a $ 25 billion stake in Bank of America.

These calculations were completed before Apple today announced a market value of two trillion dollars. Berkshire Hathaway’s holdings in recent months have been particularly exposed to the global health crisis through its multiple insurance, manufacturing, retail and service companies, but this has been largely offset by the growing value of Apple shares. The value of the firm’s Apple stake relative to the rest of its portfolio marks the extent to which investors are increasingly favoring tech companies and ignoring more traditional companies such as banks and insurers.