This has whittled Berkshire’s position in the bank down to slightly over 942 million shares, giving it a stake of around 12% in the lender’s equity. While the legendary investor appears to have soured on Bank of America to some extent, he’s probably still sweet on its dividend. The financial services company has increased its dividend for 10 consecutive years. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
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- Buffett might also comment when asked in a public forum or TV appearance, but he usually does so quite some time after Berkshire’s made the move.
- We do not include the universe of companies or financial offers that may be available to you.
- The financial services company has increased its dividend for 10 consecutive years.
- If history is any indication, Buffett, who’s been known to spread out his sells across quarters, will continue shedding Apple until he and his team feel the position is sized appropriately.
- If Berkshire hadn’t sold any of its Apple shares, the stake would have been worth nearly $200 billion at the end of June, compared to Berkshire’s market cap of about $890 billion.
Even if Buffett still likes Apple’s business, a stake that large would have an outsized impact on Berkshire over time. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. In any case, I can’t say that I recommend buying the book. Instead, if you’re really serious about learning insights into Warren Buffett’s way of investing and business management, do what other serious investors do and read the full, unabridged letters.
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Enter your mobile number or email address below and we’ll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer – no Kindle device required. Customers find the information in the book priceless, and the compilation great. The company’s new generative AI capabilities only work on iPhone 15 Pro, iPhone 15 Pro Max, and newer models. There’s a good chance, in my view, that a multi-year surge of iPhone upgrades could be on the way as customers buy new smartphones to take advantage of the artificial intelligence features. Buffett may still love Apple’s business characteristics as much as he did when he established the position, but there’s a big difference between paying a P/E multiple of 10 versus 30.
Warren Buffett’s Berkshire Hathaway Just Dumped Half Its Stake in Apple Stock. What Investors Need to Know
Customers find the book a wonderful, informative read with the best annual letters ever written. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
No matter how good a business is, its price can get to a level where investors aren’t able to earn an attractive return over the long term. When Berkshire first bought Apple in 2016 it sold for about 10 times its annual earnings per share. Over time, that price-earnings ratio has expanded and is now around 30. For shareholders and https://forexarena.net/ others who are interested, a book that compiles the full unedited versions of each of Warren Buffett�s letters to shareholders between 1965 and 2014 is available for sale at this link. This is sure to keep dinging the stock, but Apple bulls should hold fast. The company continues to be robustly profitable and is sure to remain so.
of Warren Buffett’s Berkshire Hathaway Portfolio Is Invested in These 5 Dividend Stocks
The total market value of all Berkshire equity holdings was just under $354 billion, meaning Apple comprised just over half the portfolio in terms of dollar amount. Apple (AAPL 0.03%) has ranked as Berkshire’s largest holding for years. Although Buffett has sold a significant portion of his stake in Apple this year, including a notable reduction of nearly half recently, it’s still Berkshire’s top individual stock holding by far. At the end of 1998, Berkshire’s Coke stake was worth $13.4 billion. Twelve years later, at the end of 2010, the stake was $13.2 billion. Berkshire collected dividends during that time, but the high multiple of the late ‘90s acted as an anchor on the stock for more than a decade.
I suppose if the author was another notable investor the curation might be useful, but that wasn’t the case. I was offered a review copy of a book called Gems from Warren Buffett which is basically selected snippets from Warren Buffett’s Letter to Shareholders of Berkshire Hathaway. I read it and it was entertaining, but there was no real original material other than the contribution of organizing the quoted berkshire hathaway letters to shareholders portions into themes like “Managing With Style” or “Market Forces”. It was also short; the book was small with large print and still only ran a little more than 100 pages. Using your mobile phone camera, scan the code below and download the Kindle app. Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.
Buffett is known for spending a good deal of time carefully writing the letters to be both informative and understandable. Buffett hasn’t bought additional shares of any of these top five dividend stocks lately. However, I think two are good picks for investors right now.
That Apple stake swelled to a monster size, even for Berkshire. And when a stock is responsible for over half the weight of a portfolio, it makes that portfolio vulnerable — what if Apple hits a rough patch? The company’s performance has been mildly disappointing in recent quarters, after all, and its anchor product, still the iPhone, is soon to be 20 years old. One important aspect is that Apple isn’t the only stock Berkshire has exited from recently. As July morphed into August, the company sold over $3.8 billion worth of Bank of America stock.
The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. Still, banking is a cyclical industry, and veteran finance sector investor Buffett has a good sense for economic cycles (and may think this one’s about to turn). Plus, Bank of America was an opportunistic buy for Berkshire back in the day, and it might have never been intended for a super long-term hold. The Apple holding had melted away considerably, falling by almost 50% — again, using the yardstick of market value — to slightly more than $84 billion. The tech giant’s weight in the portfolio slimmed, too, down to less than 30%.
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The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Buffett doesn’t own many high-yield dividend stocks, but Chevron is one of the few.