Today is Monday May 16th.
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The big news today is that Berkshire Hathaway (BRK.B, BRK.A) bought Apple (AAPL) in the 1st quarter.
That’s why Apple is having its best day since reporting earnings.
Warren Buffett bought 9.81 million shares in the 1st quarter.
That’s a billion dollar position.
The Oracle of Omaha typically does not buy tech companies.
He has never bought Microsoft (MSFT)
Even though Bill Gates, Microsoft Co-Founder, is a dear friend.
They play bridge together.
Warren and Bill are two of the three richest people in the world.
I wonder what the stakes are when they play bridge.
Berkshire Hathaway has a 8.59% position in IBM (IBM)
It’s lost over $2 billion so far on this investment.
But Warren buys and holds . . . sometimes forever.
He has a long term view when he buys a position.
The low point of Apple in the 1st quarter was $93.42.
Apple’s high in the 1st quarter was $112.10.
So Berkshire Hathaway bought Apple in this range.
It looks like Bershire’s Investment Managers, Todd Combs and Ted Weschler, may have bought Apple.
And not Warren himself.
But Todd and Ted follow Bershire’s investing philosophy.
Apple is trading at its lowest level in two years.
It’s a cash cow.
It will probably see an uptick as the iPhone 7 gets closer to its launch date.
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