One of the most successful value investors of all-time shocked investors with the purchase of Apple Inc (NASDAQ:AAPL) shares in 2016.
The investment made by Warren Buffett and Berkshire Hathaway Inc (NYSE: BRK-A)(NYSE: BRK-B) has done quite well for the "Oracle of Omaha."
What Happened: Berkshire Hathaway unveiled a 9.8 million first-quarter purchase of Apple shares on May 16, 2016. The stake was done at an average price of $27.25 and represented around $1.1 billion.
Buffett has since trimmed the stake in Apple, but it remains the largest stock holding in the Berkshire Hathaway portfolio.
Investing $1,000 With Buffett: An investor who chose May 16, 2016, the Berkshire Hathaway filing date, to buy a stake in Apple has done quite well.
Shares of Apple traded between $22.91 and $23.85 on May 16, 2016. An investment of $1,000 at the day’s high could have bought 10.48 shares of Apple.
A 4:1 stock split by Apple on Aug. 28, 2020 makes the 10.48 shares of Apple 41.92 shares. Those 41.92 shares of Apple would be valued at $5,954.74 based on a share price of $142.05 for Apple.
APPL Price Action: Apple's last closed at $142.02 per share. Apple shares have traded between $89.15 and $145.09 over the last 52 weeks.