Buffett’s Apple Stake Earns $40 billion since March

Buffett’s best-ever trade may be his move into tech giant Apple, which earned Berkshire Hathaway $40 billion since the market bottomed in March. This according to a recent article in CNBC. “Berkshire Hathaway’s Apple stake—which has claimed 40% of its equity portfolio—is up a whopping $40 billion since the market bottom in March,” the article reports, adding, “The investment in the tech giant played a crucial role in helping the conglomerate weather the coronavirus crisis… Read More

Nearly Half of Berkshire Portfolio in a Single Stock

Berkshire Hathaway chairman Warren Buffett, who for decades avoided tech stocks, has steered his firm heavily into the industry with 43% of the firm’s portfolio now represented by Apple stock ($91 billion). This according to a recent article in MarketWatch. While the heavy tech weighting runs counter to a diversified approach, the article notes that Buffett once described diversification as “protection against ignorance, “ and a strategy that “makes little sense if you know what… Read More

Apple Taking a Bite out of its Own Stock with its Buyback Program

Apple has been repurchasing its own shares at what a recent Wall Street Journal article describes as a “furious clip since last year’s tax-overhaul package freed up more than $250 billion” in the company’s offshore bank accounts—and in a recent earnings call Apple said it intended to buy back another $10 billion by the end of June. Given these efforts to “lighten its massive cash load,” the article points out, reaching a market capitalization of… Read More

Buffett’s Protégés and the Road to Apple

Warren Buffett, the “Oracle of Omaha”, doesn’t seem to be slowing down at the ripe age of nearly 86. Still, the buzz around when he’ll pass the baton continues, with much attention focused on Ted Weschler and Todd Combs, the supposed successors to run Berkshire’s $129 billion stock portfolio. According to the company’s legendary CEO, both former hedge fund managers have a “fundamental combination of soundness and brilliance”. Like most market players, Wechsler and Combs… Read More

Apple vs. Google, and Other Market “Playoff” Matchups

With the NCAA’s college football playoff only a couple weeks away, Validea CEO John Reese recently took a look at some stock market “playoff” matchups that feature several global powerhouses, including Apple, Coca-Cola, and Google. In a column for Forbes.com, Reese looks at how four pairs of market rivals stack up against each other. The matchups: Apple vs. Google, PepsiCo vs. Coca-Cola, Exxon Mobil vs. Chevron, and Anheuser-Busch InBev vs. Molson Coors. Reese uses his… Read More

Holiday Shopping With The Gurus

Many investors have been bearish on retail-related stocks, particularly after a mediocre start to the holiday shopping season. But Validea CEO John Reese says not to ignore what he thinks is a very attractive industry. “Wall Street always puts too much emphasis on short-term results, and analysts and the media have continually underestimated the American consumer throughout the recovery,” Reese writes in his latest Forbes.com column. “The reaction to the early results from this holiday… Read More

Why Apple Isn’t Rotting

In his latest column for Forbes.com, Validea CEO John Reese says that, despite the pounding Apple’s shares have taken in recent months, investors shouldn’t give up on the tech titan.  “Slowing sales growth, two straight quarters of declining earnings, and questions about the company’s post-Steve Jobs leadership have all sent investors heading for the hills, thinking that Apple’s best days are behind it,” Reese writes. “I think they’re probably right — and I’m still bullish… Read More