Warren Buffett has made over $112 billion following the rise of Apple shares to $3 trillion market cap. The 91-year-old billionaire’s out-of-character bet on Apple could turn out to be one of his most profitable investments as the tech giant surpassed yet another record this week.
The world’s ninth richest man, Warren Buffett, with a net worth of $108.6 billion according to Forbes, which is more than enough wealth to buy 61.9 million troy ounces of gold or 1.41billion barrels of crude oil.
Warren Buffett’s company Berkshire Hathaway began buying Apple shares in 2016 and by mid-2018, the conglomerate had acquired a 5% stake in the iPhone maker for $36 billion. In 2022, the Apple investment is now worth $160 billion, due to a strong surge that has continued into the new year.
Berkshire Hathaway has reaped the benefits of Apple’s spectacular share price increase as well as the company’s generous dividends. Berkshire Hathaway has paid out $775 million in dividends every year for the past few years.
Despite his antipathy to high-flying tech equities, Buffett’s investing associates Todd Combs and Ted Weschler helped him warm up to the industry during the last decade. The conglomerate owns the largest holding in Apple outside of index fund and exchange-traded fund providers.
Warren Buffett, the billionaire investor, has referred to Apple as the third-largest company among Berkshire’s enterprises, behind its insurance company and railroad company. According to Buffett, the allure of the iPhone keeps the customers wanting more, while driving Apple’s ecosystem.
Berkshire Hathaway, a publicly traded investment business in which Buffett holds a 16 percent economic interest, is the source of most of his wealth.
According to its 2021 letter to shareholders, Berkshire has had compounded annual improvements in its share market value of 20% since 1965. Buffett holds 39 percent of Class A shares and less than 0.001% of Class B shares, according to a stock market filing from June 2021.
In addition, the billionaire holds stock in a number of other businesses. In their proxy statements, he holds less than 1% and approximately 5% holdings in Wells Fargo and U.S. Bancorp, respectively, in Seritage Growth Properties.