Buffett is Probably Buying Now

What Warren Buffett is Buying AAPL

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When Warren Buffett is buying stocks, one of his principles of investing is:

“Be fearful when others are greedy and be greedy when others are fearful.”

With $100 billion in cash on the sidelines, and few choices of investments to make, Buffett recently repurchased $1 billion of his own Berkshire Hathaway stock in a rare buyback.

However, this recent insane market pullback includes a few stocks that Buffett’s team at Berkshire Hathaway is bullish on… Apple being one of them.

What Warren Buffett is Buying

Berkshire Hathaway Holdings 2018

Another one of Warren Buffett’s investing strategies is to buy and hold for the long term. The famous value investor believes in buying companies that he can expect to hold for 100 years.

The following is a list of Berkshire Hathaway’s 2018 holdings:

SymbolHoldingsMkt. priceHolding value
American Airlines Group IncAAL43,700,000$37.95$1,658,415,000
Apple Inc.AAPL252,478,779$172.29$43,499,568,834
American Express CompanyAXP151,610,700$105.74$16,031,315,418
Axalta Coating Systems LtdAXTA24,264,000$24.72$599,806,080
Bank of America CorpBAC877,248,600$26.97$23,659,394,742
Bank of New York Mellon CorpBK77,849,476$49.86$3,881,574,873
Charter Communications IncCHTR7,340,985$309.43$2,271,520,989
Costco Wholesale CorporationCOST4,333,363$220.06$953,599,862
Delta Air Lines, Inc.DAL65,535,000$57.16$3,745,980,600
Davita IncDVA38,565,570$59.66$2,300,821,906
General Motors CompanyGM52,461,411$35.93$1,884,938,497
Goldman Sachs Group IncGS18,353,635$189.10$3,470,672,379
Johnson & JohnsonJNJ327,100$142.23$46,523,433
JPMorgan Chase & Co.JPM35,664,767$106.65$3,803,647,401
Kraft Heinz CoKHC325,634,818$51.04$16,620,401,111
The Coca-Cola CoKO400,000,000$49.02$19,608,000,000
Liberty Global PLC Class ALBTYA19,791,000$24.49$484,681,590
Liberty Global PLC Class CLBTYK7,346,968$24.07$176,841,520
Liberty Latin America Ltd Class ALILA2,714,854$17.56$47,672,836
Liberty Latin America Ltd Class CLILAK1,284,020$17.59$22,585,912
Liberty Sirius XM Group Series ALSXMA14,860,360$38.49$571,975,256
Liberty Sirius XM Group Series CLSXMK31,090,985$38.42$1,194,515,644
Southwest Airlines CoLUV56,047,399$52.68$2,952,576,979
Mastercard IncMA4,934,756$182.60$901,086,446
Moody's CorporationMCO24,669,778$150.19$3,705,153,958
MONDELEZ INTERNATIONAL INC Common StockMDLZ578,000$43.79$25,310,620
M&T Bank CorporationMTB5,382,040$167.25$900,146,190
Oracle CorporationORCL41,404,791$48.70$2,016,413,322
Procter & Gamble CoPG315,400$91.54$28,871,716
PNC Financial Services Group IncPNC6,087,319$132.62$807,300,246
Phillips 66PSX15,433,024$89.00$1,373,539,136
Restaurant Brands International IncQSR8,438,225$55.33$466,886,989
Sirius XM Holdings IncSIRI137,915,729$6.06$835,769,318
StoneCo LtdSTNE14,166,748$21.84$309,401,776
Store Capital CorpSTOR18,621,674$29.35$546,546,132
Synchrony FinancialSYF20,803,000$25.56$531,724,680
Teva Pharmaceutical Industries Ltd ADRTEVA43,249,295$21.94$948,889,532
Torchmark CorporationTMK6,353,727$86.06$546,801,746
Travelers Companies IncTRV3,543,688$126.60$448,630,901
United Continental Holdings IncUAL25,984,542$94.84$2,464,373,963
United Parcel Service, Inc.UPS59,400$108.69$6,456,186
U.S. BancorpUSB124,923,092$53.52$6,685,883,884
USG CorporationUSG39,002,016$42.85$1,671,236,386
Visa IncV10,562,460$132.87$1,403,434,060
Verisign, Inc.VRSN12,952,745$150.33$1,947,186,156
Verizon Communications Inc.VZ928$58.64$54,418
Wells Fargo & CoWFC442,361,700$51.83$22,927,606,911
TOTAL3,516,247,867$200,985,735,532

What Buffett Is Buying

Buffett has said in the past that he would buy all of Apple if he had the opportunity… Perhaps this is one of those moments.

I would not be surprised to learn the next time that Berkshire reports earnings that Warren Buffett is buying AAPL again during this massive market pullback.

The last time Apple was at around $170 per share was in April 2018… And I wondered whether Apple should be insulated from the tech market backlash.

Last spring the tech backlash was due to the Cambridge Analytica scandal and it spread to Apple, a company that has done more than any other to emphasize privacy concerns.

In my opinion, AAPL has been unfairly crushed in this market pullback… Irrationally so.

Apple’s price/earnings ratio is now below the average P/E ratio for all stocks. Apple has over $243 billion in cash and a dividend of around 1.5%.

Indeed, this is normally the best time to buy Apple stock because we are going into the holiday buying season, normally Apple’s best quarter ever.

In the last earnings report, Apple reported the biggest earnings ever… But analysts were spooked because Apple announced that it would stop reporting iPhone sales.

Apple’s massive and numerous moats, and incredible customer loyalty and satisfaction levels, to me at least, Apple is in a good position to transition itself into a digital services company.

With Apple Watch, iPhone and computers, iPads, Airpods, and HomePod, Apple is becoming less reliant on the iPhone and more on multiple products, including the iPhone, as its driver of future growth.