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First, Berkshire Hathaway holds AAPL. Ted or Todd probably initiated the position, not Warren Buffett. Second, they are up about 300% on the stake. That equate

First, Berkshire Hathaway holds AAPL. Ted or Todd probably initiated the position, not Warren Buffett. Second, they are up about 300% on the stake. That equates to a P/E of 10x based on ttm earnings on AAPL and their basis. At the time, I think AAPL had a pretty modest valuation, also. The theory is that phones were cyclical and that service income would not offset the loss of income from devices. AAPL was widely discussed as a value investment around that time (as was Facebook).

MrPowers 6y ago
You're right. In September 2016, Apple's market cap was around 500 billion with 45 billion of profit. Apple is currently at 1.83 trillion with 58 billion of profit. The stock price has tripled, but the profit has not. Apple's fundamental value metrics were significantly different a few years ago.
divbzero 6y ago
Todd or Ted was the first to buy Apple shares for Berkshire, but Warren Buffett made the decision for the bulk of Berkshire’s current stake in Apple. The $35 billion Apple investment (worth more now) [1] is larger than what Todd or Ted manage (about $13 billion each as of last year) [2]. Buffett has also commented publicly on the rationale behind his decision to own Apple. [1]: https://www.cnbc.com/2020/07/16/warren-buffett-reaps-40-billion-from-giant-apple-stake-since-march-bottom.html https://www.cnbc.com/2020/07/16/warren-buffett-reaps-40-bill... [2]: https://www.cnbc.com/2019/02/25/warren-buffett-says-berkshire-stock-managers-weschler-and-combs-have-trailed-the-sp-500.html https://www.cnbc.com/2019/02/25/warren-buffett-says-berkshir...