Billionaire investor Warren Buffett said Apple has risen to an unprecedented $ 3 trillion, generating more than $ 120 billion in paper revenue from its investment.
Buffett’s Berkshire Hathaway first bought Apple shares in 2016, when the iPhone maker experienced a short-term downturn in its business. By 2018, the firm had raised its 5 percent stake in Apple to $ 36 billion.
Apple’s market value has risen steadily since Buffett bought the shares and topped $ 3 trillion in a short period of time earlier this week. As a result, Buffett’s value of Apple’s capital increased by $ 160 billion, and over time it exceeded $ 120 billion.
“Obviously, this is one of the strongest investments Berkshire has made in the last decade,” Edward Jones analyst James Shanahan told Acesparks about the investment.
Apple became the first company in history to be valued at $ 3 trillion. Since then, the company’s capitalization has fallen slightly below its historical limit.
At the end of September, Berkshire Hathaway owned a 5.4 percent stake in Apple. The firm sold part of its shares in 2020. It is the largest holding company in Apple’s portfolio.
Earlier this year, Buffett told investors at the annual shareholders’ meeting that the decision was “probably a mistake.”
Buffett has repeatedly praised Apple’s management, calling CEO Tim Cook a “great manager.”
“Tim Cook was unappreciated for a while. He is one of the best managers in the world. And I’ve seen a lot of managers. And he has a product that people love, ”Buffett said earlier this year.
In 2020, Buffett told Acesparks that Apple was “probably the best business in the world.”