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Tag: Buffett

Apple shares hit all-time high after Buffett raises stake

Apple shares hit all-time high after Buffett raises stake

Technology
Apple shares have hit an all-time high on news that legendary investor Warren Buffett now has a roughly 5% stake in the tech giant.Shares in Apple, already the world's most valuable company, rose by almost 4% on Friday to more than $ 183.7 each.Mr Buffett said his Berkshire Hathaway group bought about 75 million more shares of the iPhone maker in the first three months of the year.His investment moves are closely watched across the world.Mr Buffett's company has been buying up shares in Apple since 2016. Berkshire Hathaway claimed a nearly 3.3% stake, or more than 166 million shares, at the end of last year. At the time, the holding, one of Berkshire's biggest stock market gambits, was worth more than $ 28bn. Now, after the additional share purchases and an 8% rise in price since the start...
Buffett has one big investing lesson in this year's annual letter: Never borrow money to buy stocks

Buffett has one big investing lesson in this year's annual letter: Never borrow money to buy stocks

Finance
Warren Buffett believes investors should avoid using borrowed money to outperform.The Oracle of Omaha explained the perils of using debt and leverage in his 2017 annual letter to Berkshire Hathaway shareholders released on Saturday."Berkshire, itself, provides some vivid examples of how price randomness in the short term can obscure long-term growth in value. For the last 53 years, the company has built value by reinvesting its earnings and letting compound interest work its magic. Year by year, we have moved forward. Yet Berkshire shares have suffered four truly major dips," he wrote.The investor shared the data which revealed Berkshire Hathaway's stock declined by a range of 37 percent to 59 percent multiple times over the last five decades."This table offers the strongest argument I can...
Warren Buffett on how he turned a $300,000 bet into $2 million for charity in 10 years

Warren Buffett on how he turned a $300,000 bet into $2 million for charity in 10 years

Finance
Warren Buffett believes investors do not need to be brilliant to do well in the financial markets.The Oracle of Omaha made a winning 10-year bet with Protégé Partners in Dec. 2007 that the S&P 500 would outperform a basket of fund of hedge funds.But perhaps more interesting than how a simple index fund beat out some of the brightest Wall Street minds is what Buffett did with the initial proceeds for the bet.He explained in his 2017 annual letter to Berkshire Hathaway shareholders released on Saturday how he turned his $ 318,250 outlay for the bet into $ 2.2 million for the Girls Inc. of Omaha charity."Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarit
The Buffett Challenge — hedge funds vs. index funds — 9 years on

The Buffett Challenge — hedge funds vs. index funds — 9 years on

Finance
Nearly 10 years ago Berkshire Hathaway CEO (and arguably one of the best investors on Earth), Warren Buffett, issued a challenge to the hedge fund industry — a $ 1 million bet that they could not put together a portfolio of hedge funds that would outperform an S&P 500 Index fund over a 10-year period.Buffett was convinced the combination of active stock-picking and high costs would result in lagging market performance, and he was willing to put his money where his mouth was.One company stepped up to the challenge. Protégé Partners LLC selected five hedge funds (the names of the funds have not been disclosed publicly), and Buffett selected the Vanguard Admiral Shares S&P 500 Index Fund.The 10-year period began January 1, 2008, which means we are in the final year of the challenge. W