The Strategist

Analysts: Berkshire's share in Apple is one of its strongest investments

01/06/2022 - 03:38

US billionaire Warren Buffett's bet on investing in Apple shares could be one of the most rewarding for an investor. Buffett's conglomerate, Berkshire Hathaway, bought the tech giant's 5% stake for $36bn in 2018. Now it is worth around $160bn, CNBC reports.

Håkan Dahlström
Håkan Dahlström
Apple's stake in Berkshire Hathaway's portfolio is around 40%, according to calculations by Buffett's conglomerate receives an average annual dividend from Apple of about $775 million, making it the largest shareholder in Apple, excluding index and exchange-traded fund providers. Berkshire Hathaway's stake in Apple is now $162 billion. 

Berkshire Hathaway began buying Apple shares in 2016, by mid-2018 the conglomerate bought a 5% stake in the iPhone maker, costing $36bn. "Without a question, this is one of Berkshire's most successful investments in the recent decade," said Edward Jones analyst James Shanahan, who deals with Berkshire.

Buffett has not been very flattering about high-tech stocks, but Berkshire Hathaway's share of investments in the sector has grown in the past decade, thanks to his investment deputies Todd Combs and Ted Weschler. The investment in Apple was crucial in helping Berkshire survive the 2020 crisis, when other parts of the business, including insurance and energy, were hit hard by the coronavirus pandemic.