Warren Buffett still has the capacity to move markets.
Shares in the iPhone company jumped 4% yesterday after Buffett’s Berkshire Hathaway disclosed that it holds a 9.81 million share stake in the company.
The stake was worth $US1.07 billion as of March 31, but the value has since fallen into the low $US900 million range. Buffett’s announcement, made in Berkshire’s March quarter investment filing, was a major surprise for investors who follow his dealings.
Up to now Berkshire’s main ‘tech’ investment was IBM shares. Berkshire in fact lifted its holdings in IBM in the quarter by 198,853 to 81.2 million shares.
Analysts say the size of the purchase (around $US1 billion) indicates the move was done by one of Mr Buffett’s managers, Todd Combs or Ted Weschler.
It comes as investor concerns about Apple and its future are at recent highs.
Its shares had fallen 13% since mid-April after it disclosed its first quarterly revenue drop in 13 years and its first decline in iPhone sales.
The disclosure of Berkshire’s stake in Apple came a week after US investor, Carl Ichan said he had sold out of the tech group. He had built a 45.8 million stake and Berkshire could have bought some of that package in building its stake.
Berkshire also revealed that it had cut its holdings in Walmart by 949,430 to 55.2 million shares, and completely eliminated its 46.6 million share holding in AT&T.
It also cut its stake in Proctor and Gamble to just 315,400 in the wake of the purchase of Duracell from the consumer products giant.
Berkshire also bought more shares in oil refiner, Phillips 66. The company lifted its stake 23% in the quarter to more than 75.6 million shares.
Berkshire also lifts its stake in Bank of New York Mellon Corp, Deere & Co and Visa Inc. It also sold shares in Mastercard.
