While some investors – such as Carl Icahn and hedge fund honcho David Tepper – have dumped their holdings in Apple, Warren Buffett’s Berkshire Hathaway, has increased its holdings, an apparent bet Apple will make a comeback.
Bloomberg reports a regulatory filing by Berkshire Hathaway shows that as of March 31, 2016, the company owned 9,811,747 shares in Apple stock. The shares were valued at $1 billion on that date, but have since dipped in value to nearly $900 million.
Apple rose 1.8 percent to $92.19 in early trading at 8:18AM Eastern Time, in New York after Berkshire disclosed its investment. The stake in Apple is noteworthy because Berkshire has traditionally avoided technology stocks. The firm also boosted its position in IBM.
“Apple at the current valuation makes a ton of sense; it’s a consumer-product company more than a tech company,” Jeff Matthews, an investor and author of Berkshire-related books, said about the new holding. “The company has a great financial model, a great brand name and a cheap stock.”
April saw Apple investor Carl Icahn dump his stake in Apple, due to concerns over Apple’s current chilly relationship with the Chinese government. A Chinese regulatory agency recently put a stop to iTunes movie, and iBooks sales in the country. Apple CEO Tim Cook is currently visiting China, and is expected to discuss that, and other subjects with Chinese government officials this week.
Hedge fund billionaire David Tepper also sold his entire stake in Apple, according to a filing with the Securities and Exchange Commission. Tepper had 1.26 million shares that were valued at around $133 million.
