In this video I am going to look at Berkshire Hathaway’s largest holding in their stock portfolio, which is of course Apple stock.

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Reason for Initial Investment

This comes down to Circle of Competence, Moat, Management, and being able to buy for an attractive price with a margin of safety.

Obviously the company met the requirement for Warren Buffett and Berkshire Hathaway, in that the company had a strong durable moat, great management, and presented a great opportunity at its price on the market in late 2015 in 2016.

Building the Position

Berkshire started entering in Apple in Q1 of 2016.

I have based on my buy price only some monthly averages over the quarter so there will be a bit of variation but I would expect this to be fairly close. I’m not sure of the transaction fees or anything like that.

Berkshire investing in buying over one billion Apple shares between Q1 of 2016 and Q3 of 2018, taking them more than 2.5 years to totally build out their position.

Apple Dividend and Share Repurchase Scheme

In April 2021, Apple announced an increase to its share repurchase program from $225B to $315B.

Raised the quarterly dividend from $0.205 to $0.22.

During 2021, the Company repurchased $85.5B of its common stock and dividends and dividend equivalents of $14.5B.

Based on this Berkshire Hathaway will make $0.88 per year on their 887,135,554 shares which comes to $780,679,288.

The last shares they bought in Apple came in Q3 of 2018 but despite slightly reducing the position their overall stake in Apple has continued to grow through capital appreciation and Apple’s share purchase program.

Key Points / Metrics

- Shares Owned – 887.14M
- Amount paid (estimate) - $27.27
- *Current Value Based on Stock Price - $146.66B
- Increase of 506%

Enjoy the video!



Useful Links from the Video

Dataroma – 13F

https://www.dataroma.com/m/hist/hist....

Apple Dividends and Buybacks – Insider Article

https://markets.businessinsider.com/n...

iPhone Worries – CNN Business 2015

https://money.cnn.com/2015/12/18/tech...


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Time Stamps

0:00 – Intro
0:41 – Circle of Competence, Moat, Management, Margin of Safety
1:21 – Apple Buy Opportunity
2:14 – Berkshire Hathaway 13 Filing and Numbers
6:12 – Apple Share Repurchases and Dividends
8:21 – Key Numbers – Apple Investment
8:57 – Warren Buffett’s Verdict on Apple Investment
9:50 – Outro

#financialinterest #berkshirehathaway #AAPL

Disclaimer: Dan Powell is not a financial advisor. All content is for education and entertainment only. Always seek assistance from a qualified professional before making any investment decisions.