Warren Buffet, a billion dollar investor has always been in the
limelight for his amazing business sense. Known as the world's most successful
investor Warren Buffet is now a major shareholder in the world's most
successful technology
company- Apple. He is the master and very well knows to throw his cards in
business. Buffett has always kept himself away of technology companies and
haven’t made any investments in the same. This can be considered as of the one
of the negative things about his track record and only due to this he missed
the dot-com boom. But recently, Berkshire Hathaway, run by Buffett revealed
that they had purchased more than 9.8 million shares in Apple (AAPL, Tech30)
during the first quarter.
Apple brought a big revolution in the tech world and was considered a status symbol but due to competition from other brand, the sales have gone down drastically. This year shares of Apple have come down 14% in 2016, making it one of the worst stocks in the Dow this year. Infact another billionaire investor, Carl Icahn, recently disclosed that his firm has sold its entire stake in Apple due to concerns about competition in China.
Apple brought a big revolution in the tech world and was considered a status symbol but due to competition from other brand, the sales have gone down drastically. This year shares of Apple have come down 14% in 2016, making it one of the worst stocks in the Dow this year. Infact another billionaire investor, Carl Icahn, recently disclosed that his firm has sold its entire stake in Apple due to concerns about competition in China.
Now the latest is that after becoming a shareholder in Apple, Buffet has suggested Apple to invest in Entertainment sector, either in Time Warner or Netflix. But wondering why is he insisting to invest in Entertainment sector?
Here’s the story behind the picture. In US, Time Warner and Netflix are one of the top players in Entertainment industry. If Apple joins hands with Time Warner, Buffet will be in profit as he already has shares in the same. If not Time Warner, if Apple joins hands with Netflix, still he is on receiving end as he will have share in one of the key players of Entertainment too. Indirectly Warren Buffet will have shares in both key entertainment companies of US.
On this note let’s take a look at 4 principles that summarize some of Warren Buffet's core beliefs and these are reflected in many quotes:-
1.A business we understand: Invest within your circle of competence
2.With favorable long-term prospects: Our favorite holding period is forever
3.Operated by able and trustworthy management: Reputation is your most important asset
4. Available at a very attractive price: Intrinsic value and a margin of safety
Warren Buffett’s portfolio is filled with stories of success and some of the major companies where he has shares are: Kraft-Heinz Company, Wells Fargo, Coco Cola, IBM, American Express, Philips, Wal-Mart, Moody's,, Bank of New York, Master Card, Johnson & Johnson, Twenty-First Century, Lee Enterprises and so on and so forth. The highlight is that Apple’s success is recent and came quickly. It does not match the slow gradual growth of Buffet’s other large holdings.
