Buffett’s Berkshire sharply raises Apple bet

Warren Buffett’s Berkshire Hathaway has sharply lifted its bet on Apple, with a stake now worth close to $US1.5bn.

Berkshire added 5.42 million Apple shares to its position in the second quarter. Picture: AFP/ Nicholas Kamm.

Warren Buffett’s Berkshire Hathaway Inc sharply increased its bet on Apple Inc during its second quarter, bringing its stake in the iPhone maker to roughly $US1.5 billion.

Though Mr Buffett’s record has been built on investments in insurers, financial companies and industrial businesses, including household names like Coca-Cola Co and American Express Co, Berkshire disclosed in May that it had made a $US1bn bet on Apple stock. Apple’s stock has since advanced more than 20 per cent in the past three months.

Berkshire added 5.42 million Apple shares to its position in the second quarter, bringing the firm’s total stake to 15.2 million shares, worth $US1.46bn at the end of the period.

While Mr Buffett’has long voiced his aversion to investing in technology companies, it turns out the initial investment was made by one of his stock-picking lieutenants. Todd Combs, who joined Berkshire in 2011, and Ted Weschler, who arrived a year later, have shown a willingness to wade into corners of the market that Mr Buffett won’t touch, including the tech sector. The two former hedge fund managers came aboard as part of Mr Buffett’s long-term plan for the conglomerate’s future.

Berkshire’s first big step into the tech sector was in 2011, when the company disclosed a stake in International Business Machines Corp. valued at more than $US10bn, which has since been expanded. During the second quarter, Berkshire left its IBM stake unchanged, along with his positions in other big investments like Wells Fargo & Co., Coca-Cola and American Express.

Berkshire reduced its holdings in discount retailer Wal-Mart Stores Inc. by 27 per cent and cut its stake in farm machinery maker Deere & Co. by 5.7 per cent. The firm cut its stake in Suncor Energy Inc, Canada’s largest crude oil producer by 26 per cent.

Berkshire continued to build its stake in refiner Phillips 66, increasing its stake by 4.3 per cent but left its stake in pipeline giant Kinder Morgan unchanged.

Mr Buffett’s positions were disclosed in a 13F filing with the Securities and Exchange Commission, a quarterly requirement for investors managing more than $US100 million. The report indicates the number of shares held and the value of each stake at the end of the quarter.

- Dow Jones newswires