Apple and Warren Buffett Have Similar Issues(Continued from Prior Part)## ScaleAs we noted in the previous part, Apple (AAPL) and Berkshire Hathaway (BRK-B) have tons of cash. While Apple has looked at buybacks, Berkshire Hathaway has looked at investments and buybacks. Their massive size is another similarity between Apple and Berkshire Hathaway.## Boon or bane?For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale. Even with Berkshire Hathaway, it’s like a large mutual fund sitting on a $100 billion cash pile. Scale helps Berkshire Hathaway look at big opportunities and major acquisitions.## Banking exposure Buffett sold some Wells Fargo (WFC) shares in the third quarter in a bid to keep Berkshire Hathaway’s stake in the bank below 10% to avoid regulatory hurdles. Berkshire Hathaway also added some Bank of America (BAC) shares in the third quarter.Read Following Warren Buffett Might Not Always Yield Profits for more analysis on Buffett.Browse this series on Market Realist: * Part 1 - Apple and Warren Buffett Have Similar Issues * Part 2 - Buffett and Apple Have Tons of Cash, Spend Differently.
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Jan 18, 2019
Jan 18, 2019