Apple Rises on Buffett's Berkshire Stake

The transcript discusses Berkshire Hathaway's $1 billion stake in Apple, highlighting that it might not be Warren Buffett himself making the purchase. It explores how investors closely watch Buffett's moves, especially regarding Apple, a major player in the S&P 500. The discussion includes hedge funds' reactions, with some reducing their Apple holdings despite its significant market weight. The transcript also examines Apple's valuation, dividend yield, and its impact on fund managers' performance, emphasizing the importance of holding Apple in portfolios.

What is the significance of Berkshire Hathaway's $1 billion stake in Apple?

• It suggests a decline in Apple's market value.

• It shows the influence of Buffett's deputies in investment decisions.

• It reflects Warren Buffett's personal investment strategy.

• It indicates a new product launch by Apple.

Why is holding Apple stock considered strategically important for fund managers?

• Apple is the only tech company in the S&P 500.

• Apple's stock is highly volatile.

• Apple has a significant weighting in the S&P 500.

• Apple offers the highest dividend yield in the market.

What common factor was found among underperforming fund managers in 2014?

• They invested heavily in tech stocks.

• They did not hold Apple or held it at a lower weight than the index.

• They avoided all S&P 500 stocks.

• They held too much Apple stock.

How does Apple's valuation compare to other big cap tech stocks?

• Apple's valuation is identical to other tech stocks.

• Apple has a lower dividend yield than other tech stocks.

• Apple trades at a higher multiple than other tech stocks.

• Apple trades at a lower multiple than other tech stocks.

What was surprising about Tiger Global's recent action regarding Apple shares?

• They announced a partnership with Apple.

• They increased their Apple holdings significantly.

• They completely sold off all their Apple shares.

• They reduced their Apple holdings despite its low valuation.