Warren Buffett's Berkshire Hathaway has scored an $80 billion gain on Apple — more than the famed investor's entire net worth
Warren Buffett's gain on his Apple investment exceeds his personal fortune. The billionaire investor's Berkshire Hathaway conglomerate spent about $35 billion to buy 245 million Apple shares that are now worth about $118 billion, representing a gain of more than $80 billion. Buffett's net worth has sunk by $11 billion this year to $78 billion, reflecting a decline in Berkshire's share price and his philanthropy. Berkshire's Apple stake is worth more than four times as much as its Bank of America position, the second-largest holding in its portfolio. Visit Business Insider's homepage for more stories.
Warren Buffett's Berkshire Hathaway has made more money on Apple than Buffett himself is currently worth. The famed investor's conglomerate spent about $35 billion to amass roughly 245 million Apple shares between 2016 and 2018. Apple's stock price has skyrocketed since then, boosting the value of Berkshire's 5.7% stake to about $118 billion — an investment gain of more than $80 billion. Meanwhile, Buffett's net worth has dropped by $11 billion this year to about $78 billion, according to the Bloomberg Billionaires Index. Read more: MORGAN STANLEY: Buy these 22 stocks that are slashing costs as sales take a hit from COVID-19 — putting them in position to smash the market as the economic recovery continues Apple shares have soared 58% this year, lifting the iPhone maker's market capitalization past the $2 trillion mark for the first time ever this week. Investors are betting the coronavirus pandemic will lead to people relying more on Apple devices and services to inform and entertain themselves and stay in touch with others. Buffett's shrinking fortune primarily reflects a 10% slump in Berkshire's stock price this year, which has slashed the value of his 15.5% stake in the company. The investor also donated $2.9 billion of his Berkshire stock to philanthropic causes in July, bringing his total contributions to $37 billion over the past 14 years. Read more: JPMorgan pinpoints the triggers for a bond sell-off that can cause unusually large losses in everything from stocks to gold — and lays out how to be ready for it Apple's surging valuation has made it a disproportionately large part of Berkshire's business. For example, Berkshire's Apple stake is worth more than four times as much the second-biggest holding in its stock portfolio, a $26 billion position in Bank of America. Apple now makes up about 50% of the portfolio's entire value, finance professor David Kass tweeted on Friday. Moreover, Berkshire's $118 billion of Apple stock represents just over 25% of the conglomerate's $492 billion market capitalization. Buffett's company also had $147 billion in cash at the last count, meaning its Apple shares and cash are together worth more than 50% of its market cap.Join the conversation about this story » NOW WATCH: Epidemiologists debunk 13 coronavirus myths
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Warren Buffett's Berkshire Hathaway is set to plow more than $550 million into Snowflake when the cloud-data company goes public
Summary List Placement Warren Buffett's Berkshire Hathaway is set to invest more than $550 million in...Summary List Placement Warren Buffett's Berkshire Hathaway is set to invest more than $550 million in Snowflake when it goes public, according to the cloud-data group's amended S-1 filing. The billionaire investor's company will buy about 3.1 million Class A shares in a private placement, and purchase another 4 million shares from former Snowflake CEO Robert Muglia. Salesforce's strategic venture arm has also agreed to invest $250 million in Snowflake stock. Berkshire's bet is striking as Buffett has historically stuck to companies he understands, and joins a string of unusual moves from Berkshire, such as investing in a gold miner and acquiring 5% stakes in five Japanese trading companies. Visit Business Insider's homepage for more stories. Warren Buffett's Berkshire Hathaway has agreed to invest $250 million in Snowflake when it goes public in the coming weeks, according to the cloud-data company's amended S-1 filing. The famed investor's conglomerate will purchase roughly 3.1 million Class A shares in a private placement, based on the $80 midpoint of Snowflake's expected IPO price range of $75 to $85. Buffett's company has also agreed to buy another 4 million Class A shares from former Snowflake CEO Robert Muglia in a secondary transaction, paying the IPO price for each share. That could cost it $303 million to $344 million based on the expected price range. Read more: Bank of America lays out the under-the-radar indicators showing that huge swaths of the stock market are 'running on fumes' — and warns a September meltdown may just be getting started If both purchases go through, Berkshire might spend upwards of $550 million for more than 7 million shares, representing about 19% of the 38.3 million Class A shares that Snowflake expects to be outstanding after its offering. Salesforce has also agreed to purchase $250 million of Snowflake stock through its strategic venture arm, Salesforce Ventures, the filing shows. Snowflake declined to comment in an email to Business Insider. Read more: GOLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available Berkshire's latest bet is striking as Buffett famously eschews tech stocks, preferring to invest in businesses he understands. It joins a flurry of surprising moves from his company, including its first investment in a gold miner and deep cuts to its stakes in JPMorgan, Wells Fargo, and other financial companies last quarter. Buffett's company also disclosed 5% stakes in the five biggest Japanese trading companies or "sogo shosha" last week, and bought $2.1 billion of Bank of America stock over 12 straight trading days to August 4. Snowflake was founded in 2012 and privately valued at $12.4 billion in February. Its revenues surged 121% year-on-year to $133 million in the the three months to July 31, helping to narrow its operating loss by 19% to $78 million.Join the conversation about this story » NOW WATCH: Here's what happens when two hurricanes collide
Warren Buffett's bet on Barrick Gold isn't as strange as it looks. The miner models itself on Berkshire Hathaway.
Warren Buffett's Berkshire Hathaway made a surprise bet on gold miner Barrick last quarter, undermining the...Warren Buffett's Berkshire Hathaway made a surprise bet on gold miner Barrick last quarter, undermining the billionaire investor's past criticisms of the metal as an investment. However, Berkshire and Barrick have more in common than it appears. Barrick's bosses have emulated Berkshire's culture of trust and partnership and its decentralized structure, and vowed to follow Buffett's advice to think independently and invest astutely. "It is our intention to become one of the few businesses that fulfill Warren Buffett's ideal holding period of forever," Barrick chairman John Thornton said in 2016. Visit Business Insider's homepage for more stories. Warren Buffett's Berkshire Hathaway shocked investors when it revealed a $546 million stake in Barrick Gold last quarter, after Buffett warned against investing in gold for more than two decades. The bet isn't quite as bewildering as it seems. Barrick's bosses have emulated Buffett's management style for years, and modeled their company culture and structure on the famed investor's conglomerate. As a result, the gold miner is probably a better fit for Berkshire's portfolio than its peers. Here are some of the key similarities between the two companies, based on an analysis of company transcripts on Sentieo, a financial-research site: Barrick's late founder and CEO, Peter Munk, said on an analyst call in 2014 that trust within the company was key to its success. He compared his colleagues' bond to the "seamless web of deserved trust" that Buffett's partner, Charlie Munger, has underscored as critical to Berkshire's outperformance. Chairman John Thornton outlined a slew of structural changes in Barrick's 2014 annual report that moved the company closer to the Berkshire model. You can see them below (bold text is what Barrick did, italic is Berkshire's strategy): It expanded its partnership plan to 35 leaders, granting them stock options to incentivize long-term performance. It also vowed to strike fair deals with external partners such as governments and local communities, potentially sacrificing short-term revenue to build relationships and secure future projects. Buffett views Berkshire stockholders as his partners in the company. "Charlie and I are working for our shareholder-partners," he said in his 2018 shareholder letter. Barrick appointed two co-presidents, giving its operations chief and corporate-affairs boss a stake in each other's success. At Berkshire, Buffett works in partnership with Munger, Todd Combs and Ted Weschler co-manage its investment portfolio, and Ajit Jain and Greg Abel split responsibilities for the insurance and non-insurance operations respectively. Barrick decentralized its operations, halving the size of its headquarters and removing management layers between its Toronto headquarters and its mines. Its goal was to minimize bureaucracy and allow the head office to focus on allocating people and money across Barrick's operations. Thornton summed up the shift with a Buffett quote: "Hire well, manage little." Berkshire owns scores of businesses — including Geico, See's Candies, and the BNSF railway — and employs close to 400,000 people worldwide. Yet it only has a couple dozen employees in its headquarters, and Buffett and his team allocate capital across the company. That's not where the similarities end, however. Thornton vowed in Barrick's 2015 annual report that the miner wouldn't succumb to the "institutional imperative" among companies to "mindlessly imitate" their peers, a problem that Buffett identified in 1989. Barrick differentiates itself by aiming to enrich not just its owners but its employees and local communities as well, he said. The chairman also proclaimed his desire for Barrick to be one of the world's best companies at the miner's annual meeting in 2016, adding that he wanted it to be worthy of Buffett's investment. "It is our intention to become one of the few businesses that fulfill Warren Buffett's ideal holding period of forever," he said. Moreover, Thornton invoked Buffett's 1989 warning against plowing excess cash into increasingly subpar projects and acquisitions at an investor day in 2018. He vowed that Barrick would be disciplined in its investments and not fall into the trap. Based on those comments, Barrick shares Berkshire's cultural values of trust and partnership, subscribes to its decentralization model, and heeds Buffett's advice to act independently and spend intelligently. Those similarities undoubtedly factored into Berkshire's decision to invest. Thornton's goal to have Barrick live up to Buffett's standards is now a reality.Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid
Berkshire reported earnings of $26.4 billion in the second quarter, a turnaround from its $49.7 billion...Berkshire reported earnings of $26.4 billion in the second quarter, a turnaround from its $49.7 billion loss in the first quarter, when the pandemic caused a plunge in the stock market.