Invest in Apple stock and Berkshire Hathaway? This has actually always been quite redundant in the last few years. Warren Buffett, the oracle behind his investment company, invested heavily in the cult group from Cupertino in the second half of the last decade and made this investment the largest position in the listed portfolio.
But why is there a time now when investing in Apple shares and in Berkshire Hathaway is particularly redundant? An interesting question that we want to answer in more detail below.
Apple Stock and Berkshire Hathaway? Redundant!
As I said, the bottom line is that an investment in Berkshire Hathaway stock is always one that also affects Apple stock. The cult group from Cupertino takes around half of the share in the investment company’s listed portfolio. A strong, high value that also affects your portfolio. Whereby it only affects the listed portfolio and around half of it. The cult group also consists of other investments and affiliated companies, which makes the mix attractive to me.
But that’s another topic: the reason why investing in Apple stock and in Berkshire Hathaway is now less attractive to me is primarily related to the cult group from Cupertino itself. If you ask me, the fundamental valuation is no longer particularly attractive. However, it could still be justifiable to bet on a possible further performance with the investment company.
The Apple share currently has a price-earnings ratio of approx. 40.2. As well as a dividend yield of well below 1%. Values that show that the cult group from Cupertino is really anything but cheap. Especially since the relative share in your portfolio could increase consistently. After all, Warren Buffett himself always buys back his own shares, which increase your stake in the Berkshire Hathaway portfolio. In any case, recognizing that shows me: Another investment in the cult group from Cupertino may not be appropriate. Especially since the evaluation situation for me at least does not warrant a greater commitment.
Maybe a matter of opinion …
Whether you should invest in Apple shares and Berkshire Hathaway as an investor may also be a question of style. Or be dependent on different views of the cult group from Cupertino and its share certificates. For me, such a step would be out of the question now.
I’m betting on the cult company with Warren Buffett and his conglomerate. The Omaha Oracle should know what he’s doing here. In the medium to long term, I will continue to benefit from Apple. And the share buybacks, which are also consistently increasing my stake in Apple.
The article Apple Stock AND Berkshire Hathaway? Now redundant! first appeared on The Motley Fool Germany.
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Vincent owns shares in Berkshire Hathaway. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares) and recommends the following options: short June 2021 $ 240 call on Berkshire Hathaway (B shares), short January 2023 $ 200 put on Berkshire Hathaway (B shares) and Long January 2023 $ 200 call on Berkshire Hathaway (B shares).