As if Berkshire Hathaway's (NYSE: BRK-A) (NYSE: BRK-B) huge position in Apple (NASDAQ: AAPL) wasn't already enough of an indicator of famed investor Warren Buffett's confidence in the stock, Buffett told CNBC this week there is a better way to judge how much Berkshire likes its stock holdings: the rate at which his company is buying shares. Based on this measure, Buffett absolutely loves Apple stock -- because Berkshire's been buying Apple shares in droves. An Apple store. Image source: Apple. How to tell what stocks Buffett likes After Berkshire increased its position in Apple stock during its fourth quarter by 31.2 million shares, or 23%, Apple became Berkshire's largest holding when measured in dollars. When including Berkshire's 325.4 million shares of Kraft Heinz -- which Berkshire excludes from its list of common stock investments on its financial statements since Berkshire is a part of a control group and is required to account for this investment using an equity … [Read more...] about Warren Buffett Loves Apple Stock
The 'Oracle of Omaha' explained his reasoning in a cheeky way. Nina Zipkin Published 11:30 am, Monday, February 26, 2018 Photo: Kent Sievers | Shutterstock.com Image 1of/1 CaptionClose Image 1 of 1 Warren Buffett Warren Buffett Photo: Kent Sievers | Shutterstock.com Why Warren Buffett Still Has a Flip Phone Despite Holding Tons of Apple Stock 1 / 1 Back to Gallery You don’t become one of the top five wealthiest men in the world without having your finger on the pulse. Known for being the “Oracle of Omaha,” Warren Buffett has made his fortune by being able to read the signs and buy and sell stock accordingly. In an interview with CNBC, Buffett talked about why he is such a fan of Apple, which is number two on the list of companies that Berkshire Hathaway has the most stock in (the top one is … [Read more...] about Why Warren Buffett Still Has a Flip Phone Despite Holding Tons of Apple Stock
This article originally appeared in the Motley Fool. Berkshire Hathaway's (NYSE:BRK-A) (NYSE:BRK-B) latest 13F filing is out, and it reveals a number of the company's interesting trades, including selling most of its IBM stake, trimming its position in General Motors, buying more Apple (NASDAQ:AAPL), and starting a new position in Teva Pharmaceuticals, among other trades. But it was Berkshire's huge purchase of tens of millions more Apple shares that was the most interesting trade by Berkshire chairman and CEO Warren Buffett. The famed investor had already sunk billions of dollars into the stock and has already made billions of dollars on the investment. Loading up on more Apple stock in Q4 highlights just how bullish Buffett is on Apple's future. A No-Joke Bet On Apple Buffett's purchase of Apple stock didn't represent just a slight boost. The billionaire's Berkshire purchased droves of Apple stock -- 31.2 million shares to be … [Read more...] about Warren Buffett Just Bought Loads Of Apple Stock — Should You?
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope... We're still a day away from getting earnings news from Apple (NASDAQ: AAPL) -- but one analyst isn't waiting for the shoe to drop. This morning, Canadian investment bank BMO Capital announced it is downgrading Apple -- ahead of earnings, but not necessarily because of what it thinks Apple earned. Here are the three things you need to know. Image source: Getty Images. 1. Headline news Let's start with the basics. BMO Capital lowered its outperform rating on Apple to market perform, and cut its price target on Apple stock by nearly 20%, to $162 per share. If BMO's right, that means that Apple at $167 and change today is selling for about 3% more than the stock is worth. 2. Blame the iPhone X Not coincidentally, … [Read more...] about Apple Stock Downgraded Ahead of Earnings: What You Need to Know
Apple’s stock price decreased by 1.59 percent on Wednesday after J.P. Morgan lowered is sales forecast for the iPhone company’s suppliers. AAPL shares closed at $177.04 on Tuesday and were down to $174.22 on late Wednesday afternoon. The Apple stock prices come after a J.P. Morgan research note, seen by CNBC, predicted on Tuesday lower than expected sales results for Apple suppliers this year. The updated forecast follows signs of low demand for the iPhone X. A report from China last week said Apple suppliers are temporarily halting their production next month. The break is due to low orders for 2017 iPhone lineup components, supply chain sources told DigiTimes. Apple released the $1,000 iPhone X in November and the iPhone 8 and iPhone 8 Plus in September. Some believe the decrease in component orders are related to seasonal factors, but others says it's because of low sales. In the research note titled "Trimming Estimates on Smartphone Demand … [Read more...] about Apple Stock Price Falls After JP Morgan Slashes Forecasts Over Weak iPhone Demand
For much of 2017, shares of Apple (NASDAQ: AAPL) surged higher, driven primarily by the growth of the company's services business and excitement about the new iPhone X. However, various negative reports about iPhone X demand have surfaced in the past month, taking some of the shine off the stock. One analyst thinks that a rising tide of share buybacks -- enabled by the recently passed tax reform bill -- could propel Apple stock higher in 2018. In fact, Steven Milunovich of UBS expects Apple to buy back $122 billion of stock over the next two years. However, that eye-popping figure isn't as impressive as it might seem at first glance. There will be a lot of cash available As of the end of September, Apple had $252.3 billion of cash and investments held outside the U.S. in order to avoid stiff repatriation taxes. That probably increased to at least $270 billion by the end of December, as Apple usually produces very strong free cash flow during its first fiscal quarter. Under the … [Read more...] about Don’t Buy Apple Stock Just for $122 Billion of Buybacks
In what has proven to be a timely and opportunistic move, famed investor Warren Buffett has been loading up on Apple (NASDAQ: AAPL) stock through his holding company, Berkshire Hathaway (NYSE: BRK-B) (NYSE: BRK-A). Putting the spotlight on Buffett's stock-picking prowess, the stock has seen an astronomical rise, climbing about 85% since Berkshire started buying Apple in early 2016. You can bet Berkshire has made some serious money on the investment. But how many shares of Apple does Berkshire own today? And what is Berkshire's position in Apple stock worth? Here's a look at what we know about Berkshire's position in the tech giant as 2017 comes to a close. Berkshire's first purchase of Apple stock was relatively small -- at least when compared with Berkshire's top equity holdings at the time. Berkshire purchased 9.8 million shares of Apple stock, worth about $1 … [Read more...] about How Much Apple Stock Does Warren Buffett’s Berkshire Hathaway Own?
investors reacted to a bevy of announcements.Apple's stock ended down just 0.4% after a volatile day during which the view on Wall Street appeared to be that the news didn't match up to the sky-high expectations and hype.The shares closed down 37 cents at $97.99. During the day the stock traded as as high as $103.08 and as low as $96.14 — a big range for the most valuable company on the U.S. stock market.Apple stock initially jumped as the meeting progressed, especially after the announcement of a mobile payment system. But the stock faded again after the company said its new watch would work only with iPhones and wouldn't be available until next year.Shares bounced around $100 a share as the meeting progressed and two new models of the iPhone were announced. The stock gained following the plan to allow consumers to add credit card information to their phones. The gains held as the company unveiled the much rumored $350 smartwatch, but evaporated as the timing and iPhone … [Read more...] about Apple stock falls after announcements
Mega sales of iPhones, iPads, iPods and iMacs led to megaprofits for Apple, blowing past expectations of Wall Street analysts.iPhone 4's reception problems.Edward Jones analyst Bill Kreher.iPad generated most of the headlines, it was the Mac computer that helped bulk up profits.iPod Touch grew 48%, generating revenue growth of 4%.Steve Jobs said. "We have amazing new products still to come this year," he promised.Exxon Mobil - surged $6.31 yesterday, or 2.6%, to $251.89. On July 21, 2009, Apple stock closed at $151.51. Join the Conversation: … [Read more...] about Scorching iPhone, iMac & iPad sales boost Apple stock
Shares of Apple Inc. fell about 4 percent Thursday amid news that CEO Steve Jobs will need to go on medical leave until the end of June. Jobs’ news sent Apple shares sliding down as much as 10 percent to one-year lows in extended trading Wednesday, but by Thursday morning they had recovered slightly, and were down $3.49, 4.1 percent, at $81.84. BusinessWeek found that many analysts are keeping with their favorable recommendations for Apple stock. "The stock is not trading at much of a premium to its cash earnings—it’s now at eight or nine times cash," analyst Shannon Cross of Cross Research, told BusinessWeek. "This is something the market will have to digest," she says. "And hopefully he’ll come back in June." If Jobs were to leave Apple, many analysts conclude that the stock will fall about 10 percent, according to the Sydney Morning Herald. Rick Hanna, an analyst with Morningstar (MORN) in Chicago, told BusinessWeek something similar. … [Read more...] about Bad Apple: Stock takes nose dive amid CEO Steve Jobs’ medical leave