Everybody knows Warren Buffett! His expertise in making money in the stock market has made him the second wealthiest person in the world. At 85 years old, Bonnett shows no signs of slowing down. Recently, he entered the technology market, buying Apple stock. Buffett has shied away from technology companies in the past. What has changed his mind today?
The last technology company Buffett/Brookshire has invested in was IBM. When Bonnett invested in IBM, it has a low-price-to-earnings ratio. IBM also had a high dividend yield and a robust share repurchase program. The same factors that Apple is experiencing the past few years.
Also like other stocks, Buffett has invested in, Apple shares a well-known and an established quality brand name. When you think of Apple, you also think of Coca-Cola, American Express, and Wells Fargo. All these companies share the same attributes so it’s not really surprising that Bonnett would invest heavily in Apple.
Of course, Warren Buffett is human, and like most of us, prone to make a major mistake. Not all that Buffett has lays his hands on has turned to gold. In 1998, Bonnett sold off Brookshire Hathaway stock in Mc Donalds. If Bonnett had used his philosophy of long-term buy and hold, his stock in Mc Donalds would have risen around 300%. In 1988, one share of McDonald’s stock cost a dollar a share. That one share of Mc Donald’s stock today would be around $124 dollars a share.
Warren Buffett continues as CEO of Brookshire Hathaway, a company he gained control of in the early sixties. Buffett has made Brookshire Hathaway and himself billions of dollars since their early beginnings. Currently, Buffett is has a net worth of $86 billion dollars. Not too bad, for an 85-year-old investment broker, who shows no signs of slowing down!