Apple represents 15% of Warren Buffett’s portfolio

That puts him at the bottom of this list.

Fun facts from the latest SEC filings, courtesy of Whale Wisdom.


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12 Comments

  1. David Emery said:

    Did I read that Buffett is only the 4th largest Apple shareholder? Who owns more?

    0
    February 15, 2018
  2. Ken Cheng said:

    From what I gather, some of the investors on various Apple fora have as many shares as Baker Boyer NB!

    1
    February 15, 2018
  3. Fred Stein said:

    Buffet has about 3% of AAPL. Apple bought back about 21% since buyback started. Buffet followers likely bought some as well. That means about 25% of AAPL shares are no longer being traded since about 4 years ago. That will increase to 30%, in total, taken off, by early 2019.

    Safe Haven – oh yeah!

    4
    February 15, 2018
    • Michael Thompson said:

      My numbers come to about a 23.1% share reduction since the all-time split adjusted high of about 6.6 Billion shares outstanding.

      According to YCharts, Apple updated their shares outstanding as of 1/21/18. The total shares outstanding is 5.074 Billion. The lowered share total from their 1st quarter earnings report was likely caused by additional shares repurchased under the current ASR. Apple repurchased $5 Billion in the open market and $5 billion through the latest Accelerated Share Repurchase in the first quarter 2018.

      0
      February 17, 2018
  4. David Drinkwater said:

    About the same percentage for me (15%): I feel lucky to be in such esteemed company.

    0
    February 15, 2018
  5. Ken Cheng said:

    “Apple represents 15% of Warren Buffett’s portfolio”
    Doesn’t Warren know he has to “rebalance” his portfolio? [sarcasm]

    Just thought I’d take this chance to throw out one of my pet peeves. Why do investment advisors always tell you to rebalance your portfolio on a yearly schedule? Who said investments follow a yearly cycle? Wait long enough, and the investments may rebalance themselves, no intervention necessary. And if you were properly diversified at the start, why aren’t you still properly diversified a year later, even if your allocations have drifted from their original percentages? Does that even make sense? If you have to rebalance, doesn’t that indicate you weren’t properly diversified to begin with, or perhaps, they don’t really understand what they’re talking about. Taking the logic of rebalancing annually to its logical end, would imply you should rebalance constantly. Why not quarterly, why not daily, etc. Choosing one time increment as the right increment makes no logical sense to me.

    0
    February 15, 2018
    • David Drinkwater said:

      “Just thought I’d take this chance to throw out one of my pet peeves. Why do investment advisors always tell you to rebalance your portfolio on a yearly schedule?”

      I think the reasoning behind the recommendation to rebalance is sound, but it doesn’t need to be taken literally/annually/quarterly/monthly. The goal is to not become too overdependent on any one holding, in case something with that holding goes awry. Because I work a full-time job, I don’t “sit down with my broker” on as regular a basis as I might, but I have done so on occasion, and generally, he appreciates my questions: “Why did this large holding get smaller?” “What should I use for making charitable distributions this year? [generally in December for taxes or June for academic institutions]”

      Then there is always:
      “Apple is a disproportionate portion of your portfolio.”
      “Yeah, but the P/E ratio is so low, and I think the company is very stable and I am convinced it will continue to grow.”
      “OK, but remember … ‘Pigs get fat; hogs get slaughtered.'”

      It’s an exercise in “rinse and repeat”, but we end up on the same page, I think.

      Fundamentally, though, the goal is to make sure that you don’t become overweight on something because you are not paying attention, or because you don’t calculate the risks.

      What are all the typical caveats?

      “Past performance does not ensure future results.”

      “Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.”
      (I will, however, admit that I have a position in AAPL, and no immediate plans to change it.”)

      “I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from the Nameless One). I have no business relationship with any company whose stock is mentioned in this article.”

      “Additional disclosure: Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.”

      2
      February 16, 2018
      • Gregg Thurman said:

        The last sentence in the last paragraph is the most meaningful.

        0
        February 16, 2018
      • Jonathan Mackenzie said:

        I think the colloquialism that best applies to AAPL is,
        “Put all your eggs in one basket, then WATCH THAT BASKET!”

        1
        February 16, 2018
      • Ken Cheng said:

        “the goal is to make sure that you don’t become overweight on something because you are not paying attention, or because you don’t calculate the risks.”

        Good points, but what does being “overweight” mean? Relative to the index? Relative to some theoretical mix of asset classes? As for calculating risks, I always want to know what other people are thinking risks are when they say that, cause I’ve never read anything that gave me a satisfactory way to think about risk, other than using statistical methods.

        As you can tell, this topic is a bit of a pet peeve of mine, since my broker just called me on Friday, with the usual chitchat about the things they’re supposed to talk about with their clients.

        0
        February 17, 2018
    • Michael Thompson said:

      Here’s how I’m balanced: 100% in Apple.

      There isn’t a similar Investment where I can buy a company with a future earnings stream like Apple. There isn’t a company with more trustworthy numbers and books than Apple. Apple is also currently enagaged in the greatest transfer of wealth to its shareholders in corporate history.

      Microsoft and Google added together have less revenue and net earnings than Apple. Our valuation should and will be much higher.

      1
      February 17, 2018

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