Published: Fri, February 17, 2017
Technology | By Timothy Carter

Berkshire Boosts Stakes in Airlines, Apple

Berkshire Boosts Stakes in Airlines, Apple

Apple Inc. stock recently purchased by Berkshire Hathaway Inc., Warren Buffett's holding company, increased in value by $1.1 billion in six weeks, a required filing says.

In a regulatory filing, Berkshire said it almost quadrupled its stake in Apple to about 57.4 million shares, worth roughly $6.64 billion as of December 31, from 15.2 million shares three months earlier.

Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc (AAL), Delta Airlines, Inc.

Though it is unclear who make which investments, the filing appears to reflect much of the United States dollars 12 billion of stock that Buffett said he had bought between the November 8 Presidential election and the end of January.

Buffett's rising interest in Apple does come as a surprise, considering his reluctance towards technology stocks, which, according to him, are outside his zone of competence, except for International Business Machines Corp.

The company also reported it now has 31.3 million subscribers; it added 1.7 million accounts in 2016.

Warren Buffett is taking a big bite out of Apple. The disclosure about the new stake in Apple, made last May, coincided with a period when Apple's shares were on the downswing and sparked wide speculation that Buffett was calling a bottom in the stock.

Berkshire Hathaway had its "buy" rating reiterated by analysts at UBS. After all, he first started buying Apple's stock when it was south of $100 and for an investor that's known for not trying to time the market, he's doing just fine.

The stock as of last trading session moved 30.62% up from its 52 week low and was 0.02% above its 52 week high.

Most believe the initial investment by Berkshire in Apple was by Weschler or Combs.

Buffett told talk show host Charlie Rose in an interview last month that it was "in large part" his decision to dive back into airlines.

At the end of 2016, that Berkshire Hathaway holding was worth $6.6 billion.

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