Apple’s drop costs Warren Buffett about $2.8 billion, adding to struggles for Berkshire portfolio

Finance


After the Apple news, the stock fell by about 7 percent or around $10 per share. As of 5:20 p.m. ET shares of the tech giant were trading near $147.

The drop brings Berkshire’s holdings to about $37.1 billion, and a possible $2.77 billion loss overnight.

In the first quarter of this 2018, Buffett’s Berkshire bought an additional 75 million shares of Apple. That added to an existing 165.3 million shares Berkshire already owned at the end of 2017. He told CNBC at the time that he clearly likes Apple, and “we buy them to hold.”

Berkshire did not yet a return a call for comment.

“We bought about 5 percent of the company. I’d love to own 100 percent of it. … We like very much the economics of their activities. We like very much the management and the way they think,” Buffett told CNBC’s “Squawk Box.”

Buffett first announced Berkshire was buying Apple in February 2017 despite his usual aversion to tech stocks. Shares of Apple are down more than 15 percent year over year. But Berkshire’s other major bets aren’t holding up much better.

In the financial sector Bank of America, which makes up 11 percent of Berkshire’s portfolio, is down 17 percent year over year while Wells Fargo is down 23 percent. Those are the holding company’s two largest positions behind Apple. J.P. Morgan meanwhile, which makes up 1.9 percent of the portfolio, is down roughly 8 percent in the same time period.

Coca Cola, Berkshire’s fourth largest position at 10 percent of the portfolio is in positive territory, up 3 percent over the last 12 months while American Express is down 3 percent.



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