Buffett Benefits from Apple... Value of Holdings Up 48 Trillion Won Since March Low

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Berkshire Hathaway, led by Warren Buffett, has made a huge profit from Apple shares it has steadily purchased over four years, CNBC reported on the 16th (local time).

According to the report, the value of Berkshire Hathaway's Apple stake surged by $40 billion (approximately 48 trillion KRW) after hitting a low point last March. This is because Apple's stock price soared 71% from March 20 to June 15.

Berkshire Hathaway holds 245 million Apple shares, making it the second-largest institutional investor in the company. Chairman Buffett began investing in May 2016 by purchasing 10 million Apple shares. He increased his stake over the following four years, and currently, Apple shares make up 40% of Berkshire Hathaway's stock investment portfolio.

The total value of Berkshire Hathaway's Apple stake is $95 billion. Considering the total purchase amount was $35 billion, Berkshire Hathaway has earned $60 billion solely from Apple shares to date.

There had been criticism that Buffett buying already successful large-cap stocks like Apple contradicted his value investing principles. However, in the current situation where other investment targets such as insurance and energy have been severely impacted by the COVID-19 pandemic, it is analyzed that Apple helped offset losses from other investments.

Cash Seifert, an analyst at CFRA Research, said, "If Chairman Buffett had strictly adhered to his principles and only bought value stocks, his portfolio would not have performed well," adding, "Ultimately, shareholders will applaud this move."

This content was produced with the assistance of AI translation services.