On May 4th, 2018, it was announced that Warren Buffett decided to sell all IBM stock while instead, increasing its holdings with Apple Inc. Berkshire had owned more than 2 million shares of IBM after having sold all IBM stock. In the past, and specifically in 2011, Berkshire had 64 million shares of IBM stock. Berkshire actually had 64 million shares of IBM stock at an average price of $170 per share.
Apple closed at $176.89 per share, and the Berkshire stake was worth $42.5 billion. Apple became a dominant party with regard to the use of consumer electronics. There was a recent annual meeting of shareholders in Omaha, Nebraska. Buffett also has stock in Costco Wholesale. His advice is to possibly invest in these companies if only because there will be a dividend. Moody’s recent performance, for example, has come out of Berkshire owning 24.7 million shares. In the fourth quarter in 2017, Moody’s revenue grew to 24% each year to become a record $1.2 billion but they simply had to let go of Apple stock altogether, which is why Buffett doesn’t invest in tech companies.
Apple’s shares were not as cheap as in the past and this is because of Apple’s new digital assistant product, the HomePod. Apple is also poised to get themselves into health care, which can be a $3.3 trillion market in the United States. The Apple Watch can track heart rhythm abnormalities, such as atrial fibrillation, a deadly heart condition it can spot easily. Apple plans on opening medical clinics for its employees. Costco has Buffett’s business partner, Charlie Munger, on the Costco Wholesale board of directors since Costco’s business concept involves buying in bulk while selling at consumer prices with Berkshire owning 4.3 million Costco Wholesale shares.