Dating prospects spreadsheet
At Berkshire Hathaway’s annual shareholder meeting in May last year, Buffett said, “I don’t value IBM the same way that I did six years ago when I started buying.
I’ve revalued it somewhat downward…they’ve run into some pretty tough competitors.” IBM has struggled to return to profitable growth, even with its big push into software, services, and the cloud.
Perhaps Buffett believes these concerns are more than priced in.
After all, Apple’s stock trades at a forward P/E multiple of 14.2, representing a discount to the S&P 500’s multiple.
For example, growing sales by just 10% requires adding more than billion in new business (no small feat), and that assumes i Phone sales, which account for more than 60% of revenue, remain steady (i.e.
the favorable i Phone economics hold up despite an increasingly saturated market).
Learn more about our suite of tools and research for dividend investors here: On Wednesday, February 14, 2018, new information was released about Berkshire Hathaway’s portfolio.
Most quarters are fairly uneventful for the Oracle of Omaha, but Buffett and his team made a few moves during the fourth quarter of 2017.
Back then, Warren Buffett’s portfolio was much smaller in size and allowed him to pursue the greatest inefficiencies he could find in the market almost regardless of the stock’s market cap.
Berkshire also trimmed its position in General Motors (GM) by 16%, but the stock still accounts for a billion position in the portfolio (1.1% of the total).
Despite the market’s continued ascent and Buffett’s focus on value, he has been a net buyer of stocks over the past year, driven by his substantial purchases of Apple stock, which is now the firm’s largest position (slightly edging out Wells Fargo and Kraft-Heinz).
Regardless, Teva is yet another great example of Buffett living out his mantra, “Be fearful when others are greedy and greedy when others are fearful.” Besides Teva, Berkshire Hathaway aggressively snapped up over 31 million more shares of Apple, representing a 23% increase to the firm’s position.
Buffett’s stake in Apple is now valued at more than billion, representing close to 15% of the firm’s total equity portfolio value.