It was just a couple months ago when Warren Buffett’s Berkshire Hathaway opened a sizable stake in Apple (AAPL). Just the other day it was revealed that he has now added even more to that stake. And not just a little bit, but over 50% more to the holding.
So how much does Warren Buffett have invested in Apple? How about 15.2 million shares, or almost $1.5 Billion. That’s a lot of dough. To make such a sizable stake and then to increase that stake even more in a time when other big name managers are running away from the stock is telling. You might call it textbook Warren Buffett, buying when others are afraid.
Not the usual Buffett buy
However, this is anything but textbook Warren Buffett. Mr Buffett isn’t known for making big stakes in technology stocks. Actually, it’s quite the contrary as he tries to avoid them. His only other big stake in tech right now is IBM.
Textbook Buffet usually involves “boring” stocks that are known as stable long term plays, something like consumer staples. Stocks that should be around for many years to come. Could this be Warren Buffett telling the world that he think Apple is not one of those boring staple stocks? Does this mean that Apple is no longer a growth stock, but more of a value stock?
Of Course, having a nice dividend payout and a huge cash hoard labels Apple more as a slow growth stable company than a high growth high risk one. That sounds more in line with Buffett’s usual holding.
Did Buffett buy Apple himself? What about adding to it?
It’s unlikely that Warren Buffett made the Apple investment himself. In fact, back in May he actually said himself that he wasn’t the one behind the Apple purchase. Rather, it was the people he put in charge to make those decisions. Maybe that’s a good thing though because Buffett has been known to say that he only likes to invest into stocks that he understands, and that he doesn’t really understand tech stocks.
Someone over at Berkshire Hathaway seems to understand technology even though to invest $1.5 Billion dollars into it. My guess is that you should pay attention. Usually when Buffet’s minions put money somewhere the lemmings follow.
I’ll leave you with this famous quote from Warren Buffett,
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.”