Warren Buffett's Berkshire Hathaway Raises Stake in Apple by 23.3 Percent

Charlie Munger  Getty ImagesMore

Charlie Munger Getty ImagesMore

His conglomerate, Berkshire Hathaway Inc., reported that it cut its stake in Big Blue by 94 per cent during the fourth quarter, essentially drawing to a close a rare blemish on his investing record. The companies said the repurchase will let Buffett's company reduce its investment below the 10 percent level that triggers additional regulations. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.

Berkshire now owns 165.3 million shares of Apple worth just under $28 billion as of this writing, making the stock the largest position in its portfolio.

Even after rebounding a bit, Teva is still down 39% from a year ago - even after the after-hours "Buffett rally". Revenue was $11.89 billion, also beating Street forecasts.

Last year, Buffet noted that he was more confident in Apple's future than he was in IBM's, which is likely a major driver for his recent trades. Meanwhile, it made excellent progress completing its growth projects, including starting up the Bakken Pipeline, adding more storage capacity at its Beaumont Terminal, and finishing up a $6 billion chemicals expansion along the Gulf Coast with joint venture partner Chevron (NYSE: CVX).

Berkshire may have funded the Apple purchases by selling roughly $5 billion of IBM stock, reducing that stake to just 2.05 million shares worth about $314 million. For example, in December the company announced it was partnering with Canadian pipeline giant Enbridge (NYSE: ENB) on the Gray Oak Pipeline, which would transport oil from the fast-growing Permian Basin to markets along the Gulf Coast, including refineries operated by Phillips 66. Phillips 66 Partners plans to build a new unit at Phillips 66's Lake Charles Refinery that will help it boost production of higher octane gasoline.

Berkshire also almost completed its yea-long exit from International Business Machines Corp (IBM.N), selling more than 94 per cent of what was left from an investment Buffett has admitted was not among his best. In 2015, he disclosed a $4.5 billion stake in Phillips 66 and then continued to add to that holding. It helps investors in determining whether buying, selling or holding on to a stock would be beneficial for them.

Analysts on average have given a price target of $230.5 to Berkshire Hathaway Inc.

National Interstate pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. The Motley Fool has a disclosure policy.