Finance

Make 30 billion dollars a month! Buffett didn’t expect that it was the technology stocks that he couldn’t understand that saved him

With Apple’s share price reaching new highs and its market value standing at $1.89 trillion, the value of apple stock held by Mr. Buffett is more than $100 billion,

“nowadays, Wall Street investment institutions no longer ridicule Mr. Buffett for his dim eyesight, but praise his precise investment vision – successfully capturing the big bull stock of apple.” A Wall Street hedge fund manager who has long studied Warren Buffett’s value investment strategy told reporters.

according to the latest data released by the securities and Exchange Commission (SEC), during the period from July 20 to 31, Berkshire Hathaway, a subsidiary of Warren Buffett, spent 1.7 billion US dollars to increase its holdings of Bank of America shares, buying about 60 million shares in total, making Berkshire Hathaway a major shareholder of Bank of America, and also making Bank of America the second largest shareholder of Warren Buffett, only once In apple.

through tracking and analyzing the recent position changes of Berkshire Hathaway, a number of Wall Street investment institutions found that after early emptying of aviation stocks in early May, Mr. Buffett increased his holdings of Apple shares and call options. Therefore, Mr. Buffett did not miss the sharp rebound in US stocks since May, but gained higher returns because of his position adjustment and increasing his holdings in apple. After all, the recent spread of the U.S. epidemic has caused airline stocks to fluctuate violently in the past two months, swallowing some of their gains.

in bill Brewster’s view, this from the side confirmed that during the whole epidemic period, Warren Buffett continued to attach importance to the fundamentals of listed companies and the potential of performance growth. Compared with the performance decline of aviation stocks caused by the epidemic, the previous stock price rebound benefited more from retail investors’ pursuit of bottom hunting, while Apple’s performance was actually continuously improved.

of Berkshire Hathaway’s top five heavyweights, only apple has risen more than 10% this year, according to Dan ives, a strategist at wedbush securities. In contrast, other heavy positions have made Mr. Buffett lose a lot – except that bank of America’s share price fell by about 30%, Berkshire Hathaway lost more than $10 billion, Coca Cola’s position lost about $4 billion, and American Express’s position also caused a loss of about $5 billion. Fortunately, thanks to Apple’s more than $30 billion earnings, the market value loss gap of these stocks has been “filled”.

seeing that the profit contribution of Apple’s share price rise is so huge, Mr. Buffett admitted that apple is not a stock, but the third largest business of Berkshire Hathaway after insurance and railway business. And Apple may be the “best business in the world” as he knows it.

“this may be a result that Warren Buffett never thought of.” The Wall Street hedge fund manager, who has long studied Warren Buffett’s value investment strategy, told reporters. In Warren Buffett’s investment criteria, a key factor affecting the investment value of listed companies is whether it can establish firm business competition barriers, ensure the sustainable growth of its business model and create huge profits.

in his opinion, the rapid development of technological innovation has made it difficult to establish business competition barriers for technology companies. In addition to his previous investment losses in Oracle and IBM, he only bought 533000 Amazon shares, accounting for about 0.74% of the current stocks of the latter.

in his early years, there was no intersection between Warren Buffett’s investment career and technology stocks. In 2011, Mr. Buffett abandoned his consistent principle of “not investing in technology stocks.”.

when investing in IBM, Mr. Buffett made clear the investment reasons: first, management skills; second, the company’s ability to achieve five-year goals. In fact, IBM did not achieve the five-year target set earlier.

as of December 31, 2015, Berkshire Hathaway held about 8.59% of IBM. At the end of February 2016, Berkshire Hathaway said it had a Book loss of $2.6 billion at the end of 2015, and its share price fell below $120 at the beginning of 2016 due to the continuous decline in IBM’s revenue.

at the end of 2011, Berkshire Hathaway began to build a position in Intel stock, using about $200 million. As of March 31, 2012, Berkshire Hathaway held 7.745 million Intel shares, down from 11.495 million as of December 31, 2011.

as of the end of June 2012, Berkshire Hathaway had emptied all Intel shares, according to a filing with the securities and Exchange Commission.

I encountered the experience of investing in IBM and Intel. In 2016, Mr. Buffett unexpectedly invested in apple and said that Apple had “a very useful product iPhone.”.

in 2016, an investment manager of Berkshire Hathaway, which Mr. Buffett is in charge of, began to build a position in Apple stock, buying about 10 million shares. After getting approval from Mr. Buffett, the company built a large number of Apple positions. From January 1 to January 31, 2016, Berkshire Hathaway increased its holdings of nearly 76 million Apple shares, according to the data.

Mr. Buffett said in an interview with CNBC that he was one of Apple’s fans. “Apple is an incredible business. We really like the economic benefits of their activities, the management of the company and their way of thinking. ”

“this is an incredible company,” Mr. Buffett said in an interview with CNBC. “If you look at Apple, you’ll find that the company’s profitability is nearly twice that of the second most profitable company in the United States.”

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