Warren Buffett's Apple Bet Makes Berkshire Hathaway Stock Juicier Again: Analyst Spots 15% Discount

Warren Buffett’s investment in Apple Inc. AAPL has seen significant growth this year, with the tech giant’s stock price surging nearly 50%. This has resulted in Berkshire Hathaway’s BRK BRK stake in Apple, which consists of about 916 million shares, ballooning to nearly $180 billion, Insider reported.

Buffett’s Apple Bet

Buffett’s conglomerate purchased the majority of these shares for $31 billion, translating to a nearly six-fold profit on paper. The rise in Apple’s stock price is partly attributed to the investor excitement around artificial intelligence (AI), which promises to boost productivity and bolster providers’ profits.

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Berkshire’s Intrinsic Value

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.

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