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Warren Buffett is breaking all his rules.
The 89-year-old billionaire investor has long avoided technology stocks.
Yet the Oracle of Omaha has been loading up on one technology stock. And he’s making billions betting on next-generation 5G wireless.
Get details inside this urgent 5G profit briefing.
Over the past couple years, Warren Buffett has acquired a huge stake in Apple (NASDAQ: AAPL).
Barron’s reports that Berkshire’s stake in Apple is currently valued at $73 billion.
That means Apple stock accounts for approximately 33% of Berkshire’s entire investment portfolio.
Most investment managers prefer to manage a portfolio with 30 – 40 positions. And that means allocating around 3% to each position on average.
Apple has become a very sizable position even by Buffett standards. It shows Buffett’s unwavering conviction regarding Apple stock.
In recent years Apple stock has been rising – and the valuation has increased dramatically.
In 2011, I bought Apple shares for the first time. At the time, the stock traded with a price-to-earnings ratio of around 10. And that was a discount to the S&P 500 – which traded around 15 times earnings.
Since then, Apple stock has become a favorite name on Wall Street. Investors have piled into the stock – sending the share price higher. As a result, Apple’s price-to-earnings multiple has more than doubled to nearly 22-times.
Apple has already handed me 426% profits. And the biggest gains from this trade are likely in the past.
During the fourth quarter, Apple stock surged 31% to reach $293. And the stock has extended those gains to top $300 per share in the New Year.
Much of Apple’s recent gains can be attributed to excitement for the upcoming 5G iPhones.
The iPhone 11 appears to be a bigger success than originally anticipated. And there’s reason to believe that Apple sales could grow considerably in the coming year.
Today I remain bullish on Apple. And shares could continue to beat the market.
However, I’m not expecting another year of 89% gains from the iPhone maker. Looking forward to 2020 I’d expect more modest profits in the 10% to 12% range.
You’ll need to look beyond Apple for huge profits from 5G.
That’s why I’m hosting this exclusive 5G profit briefing (it’s 100% FREE).
Just go here for complete access.
Yours in Profits,
Ian Wyatt