Warren Buffett Apple Archives - Industry Leaders Magazine Aspiring Business Leaders Worldwide Thu, 16 May 2024 10:23:51 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 https://www.industryleadersmagazine.com/wp-content/uploads/2022/09/industry_leaders_magazine__favicon-150x150.png Warren Buffett Apple Archives - Industry Leaders Magazine 32 32 Warren Buffett Unveils $6.72B Investment in Chubb, Stock Rises https://www.industryleadersmagazine.com/warren-buffett-unveils-6-72b-investment-in-chubb-stock-rises/ https://www.industryleadersmagazine.com/warren-buffett-unveils-6-72b-investment-in-chubb-stock-rises/#respond Thu, 16 May 2024 10:23:51 +0000 https://www.industryleadersmagazine.com/?p=30724 Warren Buffett's Berkshire Hathaway revealed a new $6.72 billion investment in insurance firm Chubb in a regulatory filing on Wednesday, which propelled the company's stock to an all-time high. His conglomerate Berkshire Hathaway has bought nearly 26 million shares of Zurich-based Chubb for a stake worth $6.7 billion.

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Warren Buffett of Berkshire Hathaway revealed a new $6.72 billion investment in insurance firm Chubb in a regulatory filing on Wednesday, which propelled the company’s stock to an all-time high. His conglomerate Berkshire Hathaway has bought nearly 26 million shares of Zurich-based Chubb for a stake worth $6.7 billion.

Warren Buffett Unveils $6.72B Investment in Chubb, Stock Rises
(Image Credit: X)

Berkshire owned 25.92 million shares in Chubb as of March 31, according to a regulatory filing that details Berkshire’s U.S.-listed holdings as of that date. The property and casualty insurer became Berkshire’s ninth biggest holding at the end of March.

Chubb stock

The Chubb stock, which edged slightly lower by 0.13% during the day’s trading session, soared by more than 7.5% in after-hours trading to $271.96 a share as of Wednesday evening following the news of Berkshire’s stake. The stock was a record high price. The Chubb stock has gained about 12% year to date.

Effect of Buffett stake in Chubb

The gains in Chubb shares mirror the tendency of stocks rising after Berkshire Hathaway reveals them as new stake in its portfolio as it reflects what investors view as Buffett’s seal of approval.

Warren Buffett investment

Warren Buffett’s Berkshire Hathaway disclosed a sizable new investment in insurance firm Chubb in a regulatory filing on Wednesday.

“Chubb is an attractive equity investment for Berkshire because it operates in a business Berkshire knows well: property-casualty insurance,” Cathy Seifert, a CFRA Research analyst who covers Berkshire, said in an email reviewed by Reuters.

The filing indicated that Berkshire ended the month of March with $189 billion in cash and equivalents a record high stockpile for Buffett’s conglomerate.

Rise in Berkshire cash stake

Buffett had signaled at Berkshire’s annual meeting on May 4 that the company’s cash stake could rise to $200 billion by June. He said at the time that holding cash looked “quite attractive” as an alternative to high-priced stocks and uncertainty around “what’s going on in the world.”

Warren Buffett cuts Apple stake

Berkshire reduced its stake in Apple by about 22% to $135 billion as of March 31, a sale that resulted in an $11.2 billion after-tax gain on the investment. Buffett said that he expects Apple to remain Berkshire’s largest stock investment for the foreseeable future despite paring back its stake in the tech giant.

Buffett’s Chubb stake

The company began buying Chubb stock in the Q3 of last year and obtained permission from the Securities and Exchange Commission (SEC) to temporarily keep its purchases confidential.

Buffett’s firm occasionally makes such requests to defer the public disclosure of investments until it has bought the intended amount of shares in the stock to prevent other investors and the public from piggybacking on the purchases.

Buffett’s other investments and plan

Buffett, 93, has run Berkshire since 1965 and spoke at length about his succession plans at Berkshire’s annual meeting earlier this month.

Buffett outlined his succession plan for Berkshire Hathaway at the company’s recent annual meeting. Berkshire has in recent years obtained similar SEC permission for its investment in Chevron and former investments in ExxonMobil, IBM and Verizon.

The filing doesn’t indicate whether the investments were made by Buffett or Berkshire portfolio managers Todd Combs and Ted Weschler.

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Warren Buffett’s Portfolio Flaunts Apple Stock: A Jewel Of Berkshire Hathaway https://www.industryleadersmagazine.com/warren-buffetts-portfolio-flaunts-apple-stock-a-jewel-of-berkshire-hathaway/ https://www.industryleadersmagazine.com/warren-buffetts-portfolio-flaunts-apple-stock-a-jewel-of-berkshire-hathaway/#respond Fri, 05 May 2023 11:44:07 +0000 https://www.industryleadersmagazine.com/?p=26069 Apple’s stock growth potential is a salient nod towards the profitable iPhone sales exceeding the industry’s expectations, despite a 3 percent revenue decline year-over-year.

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Business mogul Warren Buffett’s Apple investment (ticker: AAPL) reigns supreme in Berkshire Hathaway’s equity portfolio worth $360 billion. With an ownership stake of nearly 5.8 percent, the tale of Berkshire Hathaway’s Apple stock began in 2016 and has been proliferating since. AAPL’s gains have grown to a position of $110 billion – approximately 40 percent prominence in Berkshire’s stock holdings

Warren Buffett’s investment strategies and philosophies are highly acclaimed due to the billionaire’s penchant for business and financing. The rapid growth of AAPL stocks as a fixture in Berkshire foreordained its annual shareholders’ meeting to furbish Buffett’s musings on Apple stock analysis. Investors are eagerly awaiting Buffett’s impressions of the tech company’s ventures into augmented reality headsets, computer chip manufacturing and Apple’s expansion in India. 

“The iPhone is truly a global product and we’re doing well in emerging markets currently, which helped us offset some macroeconomic challenges.”

– Luca Maestri, CFO, Apple

AAPL gains, owing to iPhone sales, have surged by 30 percent.  Apple’s stock growth potential is a salient nod towards the profitable iPhone sales exceeding the industry’s expectations, despite a 3 percent revenue decline year-over-year. 

Warren Buffett’s Investment Philosophy: Apple Is A “Jewel”

In 2020, Buffett had flagged his latest stock picks in the Apple investment as one of four “jewels” of Berkshire Hathaway, tagging along the company’s insurance operations, ownership of railroad BNSF and the Berkshire Hathaway Energy subsidiary. 

Buffett’s bet on AAPL stocks holds a candle to Berkshire’s expectations of incredible shareholder returns, brand recognition and an efficient management team. But the Oracle of Omaha did not hasten and arrive on the docks of Apple shares immediately. 

Buffett’s smooth ride with Apple did not begin after the iPod’s successive launch in 2001, nor after the iPhone unveiling in 2007, but rather after the growth in the big tech’s services business. 

In 2015, Apple’s annual services revenue of $19.9 billion and wearable revenue of $10.1 billion transformed in 2022 into $78.1 billion and $41.2 billion respectively. 

Warren Buffett Apple
Apple repurchased $89.4 billion in stock in September-end fiscal year and paid investors $14.8 billion in dividends. Apple Park in Cupertino. (Image Courtesy – Pexels.)

Buffett’s investment portfolio is eagle-eyed on the benefits of share buybacks which has been long highlighted through his long-time holdings such as Coca-Cola and American Express – having been predisposed to outshining dividend payments to Berkshire. 

“Our cost for Apple’s stake was $36 billion. Since then, we have both enjoyed regular dividends averaging about $775 million annually and also pocketed an additional $11 billion by selling a small portion of our position.”

– Buffett in his 2020 annual shareholder letter.

Despite the sale, Berkshire owns about 5.8 percent of Apple today. Apple’s board has authorized an additional $90 billion in buybacks after the tech giant boosted the dividend by 4 percent and AAPL shares rose about 2 percent in aftermarket trading.  

Warren Buffett’s Portfolio Stock Picks: Apple Stock in Berkshire Hathaway

Apple has truly embodied a prominent arbiter of tech taste, with the domestic and global economy. AAPL’s gains with the surge in premium iPhone sales due to strong demand, despite a second straight quarter of declining revenue, affirms the tech giant’s resilience to economic uncertainty. 

Warren Buffett Apple
Image Courtesy – Tim Cook.

Buffett’s stock picks never fall short on its management team – he has always been of high praise for Apple CEO Tim Cook. While Buffett admits that Cook was underappreciated for a long while, he believes that AAPL stocks will soar indefinitely because Cook is one of the best managers in the world. And the satisfaction rate of people hooked to Apple’s products is 99 percent. 

“Tim Cook, Apple’s brilliant CEO, regards users of Apple products as his first love. But all of his other constituencies benefit greatly from Tim’s managerial touch as well.”

Recently, the tech giant launched its high-yield savings account with Goldman Sachs. Last month, Apple opened its first retail store in India – a beacon of bright profitability for the Tim Cook-led company, at the moment. Apple is gravitating to diversify its supply chain away from China to India. iPhone sales surpassed the expected $48.7 billion by 1.5 percent to $51.3 billion. 

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