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.

See Also: Elon Musk’s Tesla’s Strong Run Might Be Over For Now, Says Investing Champion

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.

Read Next: Here’s How Many Tesla Shares You Need To Own To Equal 1% Of Elon Musk’s Wealth

Photo by Kent Sievers on Shutterstock


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Posted In: Analyst ColorNewsAnalyst RatingsTechMediaGeneralAppleBerkshire HathawayinvestmentSTOCK TRADINGtechWarren Buffett
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