Berkshire Hathaway Takes $1 Billion Stake in Apple

In an SEC 13F filing released earlier this morning, Berkshire Hathaway revealed an initial $1 Billion stake in Apple (AAPL) as of March 31, 2016.  The investment was likely made by Todd Combs or Ted Weschler.

I am quoted in the Wall Street Journal on this topic:

“It appears to be a low-risk investment with considerable upside potential…however, I do not think this is an investment that Buffett would make,” said David Kass, a Berkshire shareholder and finance professor at the University of Maryland business school. “Todd Combs and/or Ted Weschler…perhaps have a better understanding of the competitive advantages Apple possesses vis a vis the technological challenges it might face in the years ahead.”

I am also quoted in a Washington Post article:

For David Kass, a University of Maryland Business School professor who writes frequently on Buffett, that makes sense given that the size of the deal — roughly $1 billion —  is the amount that Combs and Weschler typically invest. Buffett himself generally invests in the $10 billion range.

Apple stock has also plummeted recently, making it a possible target for investors hunting for discounted stocks.

“I certainly did not expect this investment,” Kass said. “But from a value investor point of view it makes some sense.”