Berkshire Hathaway 'probably' made $50 billion on Apple stock in 2020

Tim Cook
Tim Cook (Image credit: Apple)

What you need to know

  • Warren Buffet's Berkshire Hathaway reportedly made $50 billion on its Apple stock investments in 2020.

A new report says Warren Buffet's Berkshire Hathaway investment firm likely made some $50 billion on its Apple investments in 2020.

From Business Insider:

Warren Buffett's Berkshire Hathaway likely scored a $50 billion gain on its Apple investment in 2020, lifting its total paper profits from the technology bet to north of $90 billion in less than five years. The famed investor's company plowed about $35 billion into the iPhone maker between 2016 and 2018, securing a roughly 5.5% stake. Apple's climbing stock price more than doubled the value of Berkshire's position to about $72 billion at the start of 2020, then boosted it to $109 billion by the end of September, despite Buffett and his team selling close to 4% of their stake in the third quarter.

The 'probably' is predicated on Berkshire not having sold any more of its Apple shares in the final quarter of 2020. If it didn't, its Apple holding will now be worth around $125 billion thanks to 78% growth in the last year, increasing by $50 billion in 12 months and some 250% on its initial investment.

As of September, Apple accounted for 48% of BH's $229 billion portfolio and more than 20% of its market cap.

As the report notes, Buffet has previously stated he doesn't think of Apple as a "stock" but as his "third business" alongside rail and insurance.

Apple announced a 4-for-1 stock split on July 30 following strong results. Despite a rocky start to the year which saw its shares plummet 20% in the opening two months of 2020, Apple finished the year strongly, buoyed most recently by reports it was vastly increasing iPhone production this year to keep up with demand.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9