Warren Buffett, Chairman of Buckshire Hathaway. Getty Images
Warren Buffett, the’investment geek’, picked Apple, a global information and communications (IT) company, as one of the largest investments. It is explained that the proportion has increased as much as BNSF, a railway company, which is considered as a representative investment destination for Buffett Buckshire Hathaway’s chairman.
On the 27th, Chairman Buffett said in an annual letter to investors on the same day that the value of Apple’s investment in Buckshire Hathaway reached 120 billion dollars (about 135 trillion won). In a letter, Buffett said, “Buckshire Hathaway, BNSF, and Apple are the top three stocks of Buckshire Hathaway.
According to the letter, the amount invested by Buckshere Hathaway in Apple was 31.1 billion dollars (about 35 trillion won), but after that, the value of Apple’s stock surged and the valuation rose sharply. Buckshire Hathaway started investing in Apple in 2016 and bought Apple stock for two years until 2018, and has since been selling little by little.
Chairman Buffett said, “Last year, Buckshire Hathaway sold some of its shares in Apple and made up 11 billion dollars (about 12 trillion won).” However, Apple’s stake has increased. This is due to Apple’s purchase of treasury stocks after that. Buffett said, “Despite the recent sale, Buckshere Hathaway has a 5.4% stake in Apple. Because Apple continued to buy treasury stocks, Buckshere Hathaway increased its holdings without paying any costs.”
Chairman Buffett said, “Buckshire Hathaway has also increased treasury stock purchases over the past two and a half years. Due to this influence, Apple’s shares indirectly held by Buckshire Hathaway investors increased by 10% compared to the time in July 2018,” he said in a letter.
Buffett started investing in Apple in 2016. It is late among famous investors. Bloomberg News said, “Chairman Buffett wasn’t actively investing in technology companies because he wanted to focus on companies that I fully understand,” he said. “However, his close associates such as Ted Weschler and Todd Combs changed his mind.” Explained. Combs and Weschler lead the investment division of Buckshire Hathaway, and are considered major successors to Chairman Buffett.
James Armstrong, chairman of asset management firm Henry H. Armstrong Associates, said, “Apple has many aspects that fit Buffett’s investment preferences,” and “because it has a large brand influence, is a globally distributed company, and continues to be sought by consumers.”
It is known that Bugshire Hathaway has increased its stakes in IT companies other than Apple. It has increased stakes in the world’s largest e-commerce company Amazon, cloud-based company Snowflake, and telecom company Verizon.
Reporter Sun Han-gyeol [email protected]
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