Warren Buffett once said: “Diversification is protection from ignorance. There is little point in knowing what you are doing. “Take away: load what you know.
Even if it appears to be a tech share.
A quick look at Buffett’s Berkshire Hathaway BRK.A,
The $ 214 billion portfolio underlines that the Omaha oracle follows its own advice given how much stock Berkshire has accumulated in Apple AAPL.
Thanks to Apple’s outstanding run, Buffett now owns an iPhone manufacturer valued at more than $ 91 billion, which, according to the Motley Fool, accounts for 43% of the entire Berkshire cake.
As the report shows, there are 46 securities in the portfolio, and if you add them all up – without the No. 2 stake, Bank of America BAC,
– They still don’t amount to the Apple stake, which shows how much the big tech names have sped up the recent rally.
Read:He is 34 years old and owns $ 550 million in Apple
Earlier this year, Buffett told CNBC how important the technology monster based in Cupertino, California is to Berkshire’s overall performance.
“I don’t see Apple as a stock. I consider it our third business, ”said Buffett, referring to the wholly owned subsidiaries Geico and BNSF. “It’s probably the best business I know in the world.”
Watch the interview:
Buffett’s Apple position had declined somewhat in Tuesday’s trading session, but still outperformed the broader market, such as the Dow Jones Industrial Average DJIA,
S&P 500 SPX,
and tech-heavy Nasdaq Composite COMP,
all tightly closed.