$AAPL LogoWarren Buffett bought some 5.41 million shares of Apple during the June quarter, according to regulatory filings with the Securities and Exchange Commission (SEC). The investment cost more than half a billion dollars, and represents a 55% increase in Berkshire Hathaway’s stake in Apple.

Mr. Buffett’s position puts him at odds with some other big investors. Reuters noted that David Tepper and Leon Cooperman recently began paring back on their position in $AAPL. Hedge funds have also reduced their positions in Apple as Apple faced its first year-over-year decrease in revenues in 13 years.

Apple Fans

The significance of Mr. Buffett plowing hundreds of millions of dollars into Apple for fans of the company is the nature of Berkshire Hathaway. The firm is known for making long term plays in companies it believes have somewhere to go. For instance, while Berkshire Hathaway bought $AAPL, it decreased its stake in Walmart, a company under heavy pressure from Amazon.

Berkshire Hathaway’s initially invested a billion dollars or so in Apple in May. Now the firm owns 15.23 million shares with a value of some $1.67 billion as of Monday’s close. $AAPL ended the day at $109.48, a gain of $1.30 (+1.20%), on light volume of 25.7 million shares trading hands.

That’s a fairly sizable statement of support for Apple.

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.

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Paul Goodwin

It’s a sign

Paul Goodwin

Ron. I remember that comment about the never getting above the $100 level. Does the term dipwad apply?

Paul Goodwin

Hah! I’m in sync with Warren Buffet. I just bought more shares Aug 8. Warren made billions buying GE low back about a decade ago. Hope he’s as right about this one.

RonMacGuy

I hate that I can’t get an email anymore if/when people post on TMO after I post. Lee, my criticism was toward someone in this list of responses that made a bold prediction that AAPL will never surge about $100 again!! Yet another not-so-bright prediction that is once again proven wrong.

daemon

I think he’s anticipating a tax holiday for that $2 trillion in profits Apple has in “off shore” bank accounts.

JustCause

BH will profit between $50-100 million, nice few months of work.

Lee Dronick

Spot on Ron, you think that he is “hedging” on it going a good bit higher?

RonMacGuy

Huh, looks like AAPL is surging well over $100. Go figure.

CudaBoy

Chump change – he’s hedging (get it?) his bets. He owns about 13 times as much IBM stock.