Warren Buffett's Apple Bet Makes Berkshire Hathaway Stock Juicier Again: Analyst Spots 15% Discount
Portfolio Pulse from Benzinga Neuro
Warren Buffett's investment in Apple Inc. has seen significant growth this year, with Apple's stock price surging nearly 50%. This has resulted in Berkshire Hathaway’s stake in Apple, which consists of about 916 million shares, ballooning to nearly $180 billion. UBS analyst Brian Meredith estimated that Berkshire’s portfolio appreciated by 10.1% between April 1 and July 16 this year, with 75% of that gain due to its Apple position. Meredith suggested that Berkshire’s stock gains have raised its intrinsic value by 5%, meaning its shares now trade at a 15% discount to the company’s underlying worth.
July 22, 2023 | 11:04 am
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POSITIVE IMPACT
Apple's stock price has surged nearly 50% this year, significantly boosting the value of Berkshire Hathaway’s stake in the company.
The surge in Apple's stock price has resulted in a significant increase in the value of Berkshire Hathaway’s stake in the company. This is likely to have a positive impact on Apple's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Berkshire Hathaway’s portfolio appreciated by 10.1% between April 1 and July 16 this year, with 75% of that gain due to its Apple position. Its shares now trade at a 15% discount to the company’s underlying worth.
The appreciation of Berkshire Hathaway’s portfolio, largely due to its Apple position, and the fact that its shares are trading at a discount to its intrinsic value, are likely to have a positive impact on Berkshire Hathaway's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100