The man is Warren Buffett.
AP Images.
Technology companies have largely been avoided by Warren Buffet because he looks for simple, predictable businesses at bargain prices. The bet on Apple made by a 91-year-old investor will likely be the most lucrative wager of his life.
As of September 30, the company owned 887 million Apple shares, giving it a 5.4% stake. The position rose in value to a record $162 billion on Monday, as Apple became the first company with a $3 trillion market cap.
It has made more money on Apple than on any other company. It spent about $36 billion to buy 1 billion Apple shares between the start of 2016 and the middle of last year.
Since then, the company has made around $12 billion from the position. It has racked up almost 140 billion in realized and unrealized gains because of its remaining Apple stake.
The value of the Apple stake would be as much as $184 billion today if the team had kept it. They could have missed out on $9 billion in unrealized gains if they had taken $13 billion off the table.
During the shareholder meeting last year, Buffett admitted that trimming the Apple position was probably a mistake. Charlie Munger advised him against selling.
The Apple stake is a big part of the conglomerate's value. At the end of the third quarter of 2020, the position accounted for 42% of the stock portfolio. The rest of the portfolio was worth more on September 30 than it is today.
Apple has been praised by the investor who has a stake in the company. In his letter to shareholders last year, he described the holding as a "family jewel" and said that the consumer-electronics giant was probably the best business he knows.
Business Insider has an original article.
