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Buffett’s Bet on Apple Pays Off: Berkshire Hathaway Earns over $170B from its 6% Stake
The Secret Behind Warren Buffett’s Love for Apple
“Apple has an extraordinary consumer franchise,” said Warren Buffett, the Oracle of Omaha. This statement from the renowned investor comes three years after Ted Weschler, one of his top deputies at Berkshire Hathaway, led a purchase of shares in Apple. Today the conglomerate owns about 6% of the technology giant’s total value.
But what is it that has made Buffett such a fan? Despite being a self-described Luddite, he sees how devoted Apple users are to their devices and views the iPhone as an extraordinary product that could keep its customers spending inside the Apple ecosystem. He calls this ‘the moat,’ which represents his preferred businesses.
Data is also on his side: according to a study from Consumer Intelligence Research Partners, nine out of 10 current U.S. iPhone owners choose another iPhone when buying a new device – representing 94% customer loyalty.
The Power to Return Billions
In addition to calling it “a better business than any we own,” Buffet appreciates Apple’s ability to return billions of dollars annually via share buybacks and dividends; a capital allocation strategy likely inspired by him.
― Toni Sacconaghi:
“Buffett knows a little something about regulation — two markets where he’s most active are railroads and insurance”
He showed support for this strategy at last year’s annual meeting by hailing Cook as “one of the best managers in the world.”
A Winning Investment
Berkshire Hathaway began purchasing even more Apple shares the year after Weschler’s initial purchase, with Buffett voicing his appreciation of Apple’s ‘sticky’ product – despite not using it himself. His bet on Cook and Apple has paid off. In 2016, he invested $31 billion in the company; five years later, he and Berkshire Hathaway are up almost 620% on their investment
Looking to the Future
Despite its recent decline in size – including a 10% YoY decline in iPhone sales leading to a 4% drop in revenue – Apple announced a $110 billion stock buyback plan last week.
“Once customers get into that ecosystem, they don’t leave.”
This news led to an increase in margins from a growing services business and its “best day since late 2022” according to CNBC.
Buffett trimmed his stake by about only about 1% last year amid global economic uncertainty due to COVID-19 but remains optimistic about holding onto his position for now. The challenge for both him and other investors will be facing any regulatory hurdles that come their way as criticism of monopolistic control from tech firms grows.
― Dan Eye:
“It’s not a speculative tech play…it’s kind of more like an annuity…”
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Buffett’s Bet on Apple Pays Off: Berkshire Hathaway Earns over $170B from its 6% Stake
Transitioning to Tid Lor Holdings: A New Era for TIDLER
During fiscal quarter 1/2024 ofNgern Tid Lor Public Company Limited or TIDLER Will it come out well..? As per appointment or default..!? But in the meantime TIDLER Dress up, revamp…restructure, establishTid Lor Holdings Public Company Limited or “Tid Lor Holdings” up to holding shares in other companies…
It upgrades status. “Holding Company” Full body..!!
process “Tid Lor Holdings” It will set up a stock tender board. TIDLER from other shareholders…which is the tender price How much is that..? It has not been decided yet. The shares will then be removed from the list. TIDLER delisted from the stock exchange “Tid Lor Holdings” Enter the market instead…
Close the stock market TIDLER Go by default..!!
The shareholders’ side TIDLER who saw favor with this restructuring switching to holding shares “Tid Lor Holdings” instead of using the stock exchange method or the stock exchange TIDLER with stocks “Tid Lor Holdings” In a ratio of 1 to 1…
The next step is to set up a new company. Receive the transfer of businesses related to the insurance brokerage business in the form of InsurTech, including AREEGATOR and heygoody, as well as other related assets. A total value of about 451 million baht at that time “Tid Lor Holdings” holds shares in this new company in the proportion of 99.99%…
If you can’t imagine that TIDLER What is being done?…Let investors think about the case of Pruksa Real Estate Public Company Limited or PS which has been restructured to become a holding company under the name Pruksa Holding Public Company Limited or PSH and then withdraw shares PS from the market and replace them with PSH shares.
or in the case of Dhipaya Insurance Public Company Limited or TIP, which has been restructured into a holding company. To expand the business under the name Thipaya Group Holdings Public Company Limited or TIPH.
Come back to TIDLER The transition to Hold is interesting. But what is more interesting is that it is an InsurTech step..!!
Currently, there is funding for large buildings. Shop finance and street finance everywhere And after a while more virtual banks will compete for customers. As a result, this market was originally a sea of red. it will become a sea of fire and it is a business problem. TIDLER New waters must be found…
The answer seems to be the InsurTech business. TIDLER At this moment…
Ok…accident insurance brokerage business Although there are big players in the market But if you look at the non-life insurance premiums in 2023 with a value of 285,028 million baht, a growth of 3.5% from the previous year, it is not that small and there is a chance for further growth.
And if I had to guess… TIDLER Being a subsidiary of Krungsri Bank (BAY), it apparently uses data from the bank’s customer base to add value to the general insurance brokerage business … in the past, operations may not be under the bank have been fully fulfilled. With Bank of Thailand criteria covering it… TIDLER It will make you more flexible.
As for the main business, like the car registration loan business I’m not abandoning it now … but maybe in the future. Because there is that one sentence TIDLER note that “In the future, Tid Lor Holdings may change the structure of the company. To suit the business environment, the law and in the best interests of shareholders.” Let’s talk about it.
If asked, when it became a holding company, shares “Tid Lor Holdings” What will it be like..??
Of the character of the stock TIDLER Previously, it was going to hang with the funding flow. If there is news of interest rate cut, when..?? You will see speculation in stocks. TIDLER Busy, but this character is about to change completely From being a growth stock with low dividends, it will move to a defensive stock approach with high dividends for shareholders to get the most benefit.
make stocks “Tid Lor Holdings” Not suitable for speculators (profits), but more suitable for collectors (dividends).
You have to measure your mind. Which way will shareholders choose..??
But it’s certainly over. “share TIDLOR and the speculators”..!!
…hee hee…
#TIDLOR #Insurance #Coverage
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