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Warren Buffett: Coincidence or plan to reduce his stake in Apple?

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Buffett touted iPhone's loyal customer base

Warren Buffett: σση σο σση ;μετος στν /></p> <p> Photo: AP </p> <p>The “Wizard of Omaha” Warren Buffett had raised questions after his move not long ago to sell nearly half of his shares in Apple, which translated into the end of the mega investor's investments in the iPhone maker, which was part of broader context of concern about the economic situation in the US and the possibility of a recession.</p> <p>However, with a closer look, his followers noticed that Berkshire Hathaway owns the same number of shares in Apple and Coca-Cola, that is 400 million .shares.</p> <p>“If Buffett likes round numbers, he may not be planning to sell additional Apple shares,” said David Cash, professor of finance at the University of Maryland's Robert H. Smith School of Business. “Just as Coca-Cola is a 'permanent' position for Buffett, so Apple can be,” he noted.</p> <p>The 93-year-old legendary investor bought 14,172,500 shares of Coca-Cola for the first time. in 1988 and increased his stake in the following years to 100 million shares by 1994. Thus, the investor has steadily maintained his stake in Coca-Cola at essentially the same round number of shares for 30 years.</p> <p>Due to two rounds of 2-for-1 stock splits in 2006 and 2012, Berkshire's holdings in Coca-Cola totaled 400 million shares.</p> <p>Buffett said he discovered the iconic soft drink when he was just 6 years old. In 1936, Buffett began buying six Coca-Colas at a time from his family grocery store for 25 cents each, to sell in the neighborhood for five cents more. Buffett said that's when he realized the product's “tremendous consumer appeal and commercial potential.” like Apple appears to defy Buffett's longstanding principles of value investing, but the famous investor treated it like a consumer products company like Coca-Cola, not a technology investment.</p> <p>Buffett has touted the iPhone's loyal customer base, saying people would give up their cars before giving up their smartphones. He even called Apple the second most important business after Berkshire's insurance conglomerate.</p> <p>After that, it came as a shock to some that the news that Berkshire had “dumped” more than 49% of its stake in the manufacturing company iPhone in the second quarter.</p> <p>Many suspected it was part of portfolio management or a broader overall view of the market rather than a judgment on Apple's future prospects. The sale reduced Apple's weighting in Berkshire's portfolio to about 30% from nearly 50% at the end of last year.</p> <p>And by settling into that round number, it appears to be at a point where preferred by Buffett for his most beloved and long-held stocks.</p> <p>However, some said it could just be a pure coincidence. “I don't think Buffett thinks that way,” said Bill Stone, chief investment officer at Glenview Trust Co. and a Berkshire shareholder.</p> <p>But at Berkshire's annual meeting in May, Buffett talked about an unlimited stock holding period for both companies.</p> <p>“We own Coca-Cola , which is a wonderful business,” Buffett said. “And we own Apple, which is an even better business, and we will own, unless something really extraordinary happens, Apple and American Express and Coca-Cola,” he stressed.</p> <p><noindex></p> <div class=Source: www.kathimerini.com.cy

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