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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.
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:
|Symbol||Holdings||Mkt. price||Holding value|
|American Airlines Group Inc||AAL||43,700,000||$37.95||$1,658,415,000|
|American Express Company||AXP||151,610,700||$105.74||$16,031,315,418|
|Axalta Coating Systems Ltd||AXTA||24,264,000||$24.72||$599,806,080|
|Bank of America Corp||BAC||877,248,600||$26.97||$23,659,394,742|
|Bank of New York Mellon Corp||BK||77,849,476||$49.86||$3,881,574,873|
|Charter Communications Inc||CHTR||7,340,985||$309.43||$2,271,520,989|
|Costco Wholesale Corporation||COST||4,333,363||$220.06||$953,599,862|
|Delta Air Lines, Inc.||DAL||65,535,000||$57.16||$3,745,980,600|
|General Motors Company||GM||52,461,411||$35.93||$1,884,938,497|
|Goldman Sachs Group Inc||GS||18,353,635||$189.10||$3,470,672,379|
|Johnson & Johnson||JNJ||327,100||$142.23||$46,523,433|
|JPMorgan Chase & Co.||JPM||35,664,767||$106.65||$3,803,647,401|
|Kraft Heinz Co||KHC||325,634,818||$51.04||$16,620,401,111|
|The Coca-Cola Co||KO||400,000,000||$49.02||$19,608,000,000|
|Liberty Global PLC Class A||LBTYA||19,791,000||$24.49||$484,681,590|
|Liberty Global PLC Class C||LBTYK||7,346,968||$24.07||$176,841,520|
|Liberty Latin America Ltd Class A||LILA||2,714,854||$17.56||$47,672,836|
|Liberty Latin America Ltd Class C||LILAK||1,284,020||$17.59||$22,585,912|
|Liberty Sirius XM Group Series A||LSXMA||14,860,360||$38.49||$571,975,256|
|Liberty Sirius XM Group Series C||LSXMK||31,090,985||$38.42||$1,194,515,644|
|Southwest Airlines Co||LUV||56,047,399||$52.68||$2,952,576,979|
|MONDELEZ INTERNATIONAL INC Common Stock||MDLZ||578,000||$43.79||$25,310,620|
|M&T Bank Corporation||MTB||5,382,040||$167.25||$900,146,190|
|Procter & Gamble Co||PG||315,400||$91.54||$28,871,716|
|PNC Financial Services Group Inc||PNC||6,087,319||$132.62||$807,300,246|
|Restaurant Brands International Inc||QSR||8,438,225||$55.33||$466,886,989|
|Sirius XM Holdings Inc||SIRI||137,915,729||$6.06||$835,769,318|
|Store Capital Corp||STOR||18,621,674||$29.35||$546,546,132|
|Teva Pharmaceutical Industries Ltd ADR||TEVA||43,249,295||$21.94||$948,889,532|
|Travelers Companies Inc||TRV||3,543,688||$126.60||$448,630,901|
|United Continental Holdings Inc||UAL||25,984,542||$94.84||$2,464,373,963|
|United Parcel Service, Inc.||UPS||59,400||$108.69||$6,456,186|
|Verizon Communications Inc.||VZ||928||$58.64||$54,418|
|Wells Fargo & Co||WFC||442,361,700||$51.83||$22,927,606,911|
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.