Buffett is a long time friend of Microsoft founder Bill Gates. Yet Buffett never bought more than a nominal 100 shares of Microsoft. In contrast, Berkshire Hathaway’s single largest investment in any one company has been Apple. Today, Apple accounts for well over 40% of Berkshire’s publicly traded investment portfolio. It is by far the single most successful investment in Berkshire’s history.
Back in the mid-1980s, Steve Jobs owned 20% of Apple. But after he was ousted from the board, Jobs sold 99.99% of that 20% stake for a gain of $100 million. He kept one single share to continue receiving annual reports and attend shareholder meetings. Had Jobs never sold his 20% stake in Apple back in 1985, those shares would be worth $450 billion today. That’s about 4.5 times Buffett’s net worth today.
So, even Steve Jobs owned 20% of Apple stocks once, Warren Buffett made far more on Apple stocks than Jobs ever did.
Sven Franssen