Warren Buffett and Apple Stock: Drowning In Cash

Sometimes, the news item that the finance media fixates on is, in reality, the biggest news item of all. The news story that Buffett has bought an additional 75 million shares of Apple stock, supplementing the position of 166 million million shares that Berkshire Hathaway owned as of the annual report, bringing the total ownership position in the iPhone-maker to just a little over 241 million shares.

What I have not seen reported is how the immense Apple cash position relates to Buffett’s investment–i.e. Apple is sitting on $285 billion in cash while Apple is divided into just a tad over 5 billion shares outstanding, meaning that each share of Apple that you buy contains $57 in cash.

Buffett, who has expended a little over $30 billion of Berkshire’s resources to buy shares of Apple now worth around $45 billion, has “look-through” pro-rata portion of Apple’s cash position in the Read the rest of this article!