What does Berkshire Hathaway’s (BRKA) $1 billion stake in Apple (APPL) tell you about the tech titan’s stock?
It’s a good question, given that the stake comes as other big money managers are exiting, or paring down their positions. As my colleague Chris Dieterich remarked earlier today, Berkshire’s position appears to put the value-investing powerhouse at odds with hedge fund manager Carl Icahn, who last month announced that he had recently eliminated his position in the tech giant, not to mention a few others big names.
And in the last few days, 13-F filings required by the SEC show that David Tepper’s Appaloosa Management exited his stake in Apple during the first quarter, as did Julian Robertson’s Tiger Management.
Yet Apple’s stock price is up 4.1% to $94.22 in recent market action, after slipping below $90 a share last week to hit a new 52-week low. The shares are down 27.6% over the past 12 months.
Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, had this to say?
Buffett is a long-term investor, who also runs companies (not just investments); Carl typically runs shorter, and deals in “deals” and reselling. The difference is investment reflects their approach and time schedule – so investors need to evaluate the path that fits them.
Investors and journalists like to scrutinize — and in some cases mirror – the portfolio moves of Wall Street titans like Warren Buffett and hedge fund gurus like Icahn.
But aping your favorite Barron’s cover boy based on these SEC filings can pose a problem. First, hedge funds don’t always get it right. Also, 13-F filings generally don’t hit the wires until the very last minute, so portfolios can lag big market moves or fail to reflect changes to a portfolio since the filing deadline.
Case in point, Apple’s stock price dropped significantly after the company reported its first quarterly revenue decline since 2003 last month.