One of the most successful value investors among the most shocked investors of all time with the purchase of Apple AAPL Let’s take a look at how the technology giant’s stock has fared since the acquisition of Oracle of Omaha was revealed.
what happened: legendary investor Warren Buffett announced the purchase of Apple stock for $9.8 million on May 16, 2016. Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), led by conglomerate Buffett.
Apple stock was bought at an average price of $27.25 at the time, or about $6.81 adjusted for the 2020 stock split. Buffett’s first stock purchase was about $1.1 billion.
In 2021, Buffett cut some of his Apple stock positions and made big gains on his investments in tech companies.
In the fourth quarter of 2022, Berkshire Hathaway added Apple stake and bought more than 333,000 shares in the tech giant.
Apple remains one of Buffett’s and Berkshire Hathaway’s largest holdings, accounting for more than 40% of their investment. Berkshire Hathaway owns more than 5% of his shares in Apple.
Related Link: Here’s how much Warren Buffett makes in Apple’s annual dividend.
Invest $1,000 with Buffett: Investors who chose to buy Apple shares on May 16, 2016, the date of filing with Berkshire Hathaway, did very well.
Apple stock traded between $22.91 and $23.85 on May 16, 2016. At that day’s high, he could have bought his 10.48 shares of Apple with his $1,000 investment.
Apple’s 4:1 stock split on August 27, 2020 will reduce Apple’s 10.48 shares to 41.92 shares. This 41.92 share of his Apple stock is valued at $6,331.18 at the time of writing. This assumes a stock price of $151.03 for Apple stock.
This represents a hypothetical return of 533.1% over the last seven years.
of SPDR S&P 500 ETF Trust spyTracking the S&P 500 is up 194.9% over the same period.
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