Buffett's Berkshire Invested $1 Billion in Apple

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Will be used in accordance with our Privacy Policy
Buffett's Berkshire Invested $1 Billion in Apple
Image credit: Reuters | Kevin Lamarque | File Photo
Warren Buffett, chairman and CEO of Berkshire Hathaway.
2 min read
This story originally appeared on Reuters

Warren Buffett's Berkshire Hathaway Inc. on Monday revealed a new stake in Apple Inc., in a bet that the stock's price could rebound after iPhone sales fell for the first time.

Berkshire held 9.81 million Apple shares worth $1.07 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission detailing the company's U.S.-listed stock holdings.

It is not clear who made the investment, Buffett or one of his portfolio managers, Todd Combs and Ted Weschler, who each invest about $9 billion.

Buffett has said he typically makes Berkshire's multibillion-dollar investments, while Combs and Weschler make smaller wagers.

The investment in Apple may have been made with money from the sale of AT&T Inc. stock.

Berkshire held $1.6 billion of AT&T at year's end but listed no investment in the phone company in Monday's filing.

Apple shares, which were up 1.4 percent in premarket trading at $91.81, are nearly one-third below their record high last April. They are also well below their price level at the end of March.

The Apple stake deepens Berkshire's commitment to the technology sector, which Buffett has long shunned, apart from a big stake in International Business Machines Corp. He has long said he does not understand the tech sector well enough.

On Monday, Buffett confirmed to CNBC that he offered to help Dan Gilbert, the chairman of Quicken Loans and owner of the Cleveland Cavaliers basketball team, finance a bid to acquire Yahoo Inc.

Reuters first reported Buffett's support on Friday.

Last month, billionaire activist investor Carl Icahn revealed that he had sold his entire stake in Apple, citing the risk of China's influence on the stock.

Apple last month reported its first decline in revenue in 13 years, as growing competition hurt iPhone sales.

(Reporting by Jonathan Stempel in New York; Editing by Lisa Von Ahn and Steve Orlofsky)

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.