Berkshire Hathaway has Apple at second of its ‘four giants’ investment value.
In Warren Buffett’s letter to shareholders, who’s closely affiliated with the company, the praise for Apple appears again. Buffett’s description for the Cupertino-based company is ‘runner-up Giant’, and just behind ‘a cluster of insurers’ that Bekshire owns 100% of.
Berkshire’s ownership of Apple is 5.55 percent, up from 5.39 from the previous year. Buffett said that the increase may seem incremental; however, when compared to the stock’s value, shareholders can gain as much as $100 million for each 0.1 percent.
The letter credits Apple CEO Tim Cook as a ‘fantastic manager’ and a ‘brilliant CEO’ who has a managerial touch that benefits all constituents. The investor adds that only Apple dividends were used in GAAP earnings from the company’s reports. Apple gave $785 million for dividends, and share of earnings made for $5.6 billion.
