By Lauren Pollock, The Wall Street Journal
Berkshire Hathaway Inc., the company led by Warren Buffett, took in the first quarter of this year a position of US $ 1.000 million in Apple Inc., at a time when the actions of the technology giant are being battered by the slowdown in iPhone sales.
the legendary investment firm reported owning March 31 9.81 million Apple shares, at a value of US $ 1,070 million. However, the value of that investment declined sharply after last month Apple will report its first drop in quarterly revenue since 2003.
Buffett, who for years avoided technology stocks and professed not to understand the sector, it has been argued that it is difficult to defend its competitive advantages. Buffett’s wealth has been built on investments in insurance companies and financial and industrial companies, including household names such as Coca-Cola Co. and American Express Co.
His firm, however, has not prevented technology altogether. In 2011 he bought a US $ 10.000 million in shares of International Business Machines Corp. in the first quarter, Berkshire increased their participation slightly.
According to information known in the last hours, Berkshire would also support a consortium would be competing for the assets of Yahoo Inc. Internet according to Reuters and other media, this consortium include the founder of Quicken Loans Inc., Dan Gilbert. This would mark another investment of Berkshire on an old name technology.
Apple, Berkshire probably saw a buying opportunity as stocks fell sharply from highs last year, as the company is struggling to sustain increased sales following the introduction of its smartphones with larger screens in late 2014. the new 2015 models have not garnered much enthusiasm among consumers.
the action of Apple who last July was trading above US $ 130, he closed the first quarter with US $ 108.99 and continued to fall. The action had a recovery in morning trading by investing Berkshire, up 1.8% to US $ 93.17. The market value of the company is approximately US $ 510.000 billion, according to FactSet.
The positions of Berkshire were disclosed in a 13F form submitted by the company to the Commission on Securities and Exchange States States, a quarterly requirement for investors who manage more than US $ 100 million. The report details the number of shares and value of each share at the end of the quarter, so it is not clear whether the company Buffett has continued to buy shares since then.
The investment Berkshire Apple- the only new position taken by the firm in the quarter-occurs after the departure of another well-known investor, Carl Icahn, who last month said it had sold its large stake in the company on the block. At that time he told CNBC that Apple is still a large company but is no longer a safe bet as an investment option. Icahn made his initial investment, reported at around US $ 1.500 million in 2013. He later bought more shares and called the company to boost its share buyback.
At IBM, Berkshire bought 198.853 shares in the first quarter, bringing the total value of your position amounted to US $ 12.300 million. IBM is one of the four major investments Berkshire, along with Kraft Heinz Co., Wells Fargo & amp; Co. and Coca-Cola Co. Those three shares were unchanged in the first quarter.
Berkshire continued betting on Phillips 66, increasing the size of its investment there by 23% to US $ 6.500 millions. The company eliminated its position in AT & T Inc., which had also compared to the previous quarter. Buffett had been a major investor in DirecTV, AT & T bought last July
The company also traded in the quarter most of its position of US $ 4.200 million in Procter & amp.; Gamble Co. to buy the battery maker Duracell. That agreement, which was originally introduced in late 2014, involved the stock exchange of a business that can generate cash and broaden the base of Berkshire profits without paying too much tax. The remaining position of the firm in the manufacturer of razors Gillette brand and Pamper diapers was around US $ 26 million to March 31.
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