There are very few parallels in Warren Buffett’s investing career that can match the amount of cash that he has put forward to buy an ownership stake in a publicly traded stock. With Berkshire’s American Express and Coca-Cola stake, valued at $15 billion and $18 billion respectively, Buffett only put a little over $1 billion into each–the economic value of the investments became enormous because because they compounded at a nice clip over the past three decades. Berkshire’s $11 billion investment in Wells Fargo, worth around $30 billion today, is the largest amount of initial capital dedicated to an investment out of any current Berkshire holding.
This Apple move completely dwarfs that. Buffett has sunk $30-$35 billion of Berkshire’s own cash reserves into shares of Apple stock now worth between $40-$45 billion. The $10 billion gain that Berkshire already makes it one of only nine Buffett investors that have gone … Read the rest of this article!