Warren Buffett owns Apple shares. Should UK investors copy him?

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images Warren Buffett owns Apple shares. Should UK investors copy him? Enter Your Email Address Tezcan Gecgil, PhD | Wednesday, 22nd July, 2020 | More on: AAPL Since the late 1950s, Warren Buffett and his team have transformed Berkshire Hathaway from a struggling textile manufacturer to a holding company with a market capitalisation greater than $460bn. Apple (NASDAQ: AAPL) shares now comprise around 20% of Warren Buffett’s portfolio with Berkshire Hathaway owning $91.3bn worth of AAPL stock.Put another way, Buffet is a believer in the future of the Cupertino, California-based tech titan. Year-to-date, Apple shares are up around to 35%. But that metric tells only half the story. On 23 March, AAPL stock hit a recent low of $212.51. Now it’s hovering at $395. So since then, AAPL stock is up an eye-popping 85%. I think UK investors may also share Mr Buffett’s enthusiasm regarding AAPL.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why Buffett loves Apple sharesEarlier in the year, Buffett released his annual shareholder letter. He believes stocks will most likely beat bonds over long term if interest rates stay low.In the US, the Federal Reserve has slashed interest rates to record low levels in recent months as part of its efforts to ease the economic effects of the pandemic. Apple shares remain Berkshire Hathaway’s largest holding and part of Buffett’s conviction regarding them links to that view that broader markets will outperform most other asset classes.Buffett’s typical preferred investments areLarge-cap stocksConsumer brandsFinancials, including banks and insurance companiesStocks that pay dividendsIn August 2018, Apple became the first US-based company to hit a $1trn valuation. Currently the market-cap is over $1.7trn. By comparison, Microsoft and Amazon each have market-caps of about $1.6trn. On a side note, all three companies have been crucial in driving broader US markets higher since March.With such a market-cap, it would be safe to assume that Apple shares are unlikely to be held down by the market for too long, even in uncertain times brought on by Covid-19. The Street and Warren Buffett regard large market-cap companies as good and stable long-term investments. Although most market participants think of Apple as a tech company, Buffett views it as a compelling consumer business thanks to its popularity worldwide. In a recent interview he said: “I do not focus on the sales in the next quarter or the next year. I focus on the … hundreds, hundreds, hundreds millions of people who practically live their lives by [iPhone]… It’s probably the best business I know in the world”.Apple controls over 50% of the US smartphone market. Many analysts agree that 5G will likely turbocharge its stock price in the coming months too.Foolish takeawayAPPL is the cornerstone of Warren Buffett’s portfolio. If you also share his views and would like to buy Apple shares, you may want to talk to you financial advisor about their suitability for your risk/return profile. There may also be tax implications of owning foreign shares. Once you’re ready to hit the ‘buy’ button, you should typically be able to buy the stock through your broker.Alternatively and very easy, there are UK-based exchange-traded funds (ETFs) that include Apple as a holding. They include the AXA Framlington Global Technology Fund, Herald Investment Trust, iShares S&P 500 Information Technology Sector UCITS ETF USD, and Polar Capital Technology Trust. These funds would enable UK investors to take a bite out of Apple shares as well as other technology stocks. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. tezcang has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Apple, Berkshire Hathaway (B shares), and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short September 2020 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Tezcan Gecgil, PhDlast_img

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