Warren Buffett "I am NOT buying more Apple and we OVERPAID for Kraft"

TL;DR

Warren Buffett discusses his views on Apple, admitting that he would buy more if the stock price drops, and expresses regret for overpaying in the Kraft Heinz deal. He also reveals that Berkshire Hathaway was close to a significant acquisition in the fourth quarter.

Transcript

say oh I'm gonna buy for $11 a share about 96 billion they could have pulled off the acquisition you could have bought it all cash wouldn't had to issue any debt with it oh this weekend has absolutely revolved around the great Warren Buffett and why is that what Warren Buffett released his annual shareholder letter which by the way I did a highligh... Read More

Key Insights

• 😑 Warren Buffett expresses interest in buying more Apple shares if the price drops further.
• 🤝 Berkshire Hathaway admits to overpaying in the Kraft Heinz deal.
• 👨‍💼 Buffett highlights the importance of businesses earning enough to justify the invested capital.
• 😚 Berkshire Hathaway was close to a significant acquisition in the fourth quarter, but the deal did not materialize.
• 🎟️ Speculation suggests that the missed acquisition could have been General Electric, General Motors, or a private company.
• ❓ Warren Buffett's honesty and transparency regarding mistakes in investments contribute to his credibility as an investor.
• ❓ Apple's dividend increase could result in substantial dividend income for Berkshire Hathaway.

Questions & Answers

Q: Would Warren Buffett consider buying more Apple shares in the short term?

While Buffett would like to buy more Apple shares, he believes the stock needs to drop below $150 before considering adding to his position.

Q: How much dividend income can Berkshire Hathaway expect to receive from their Apple investment?

With Berkshire Hathaway's ownership of 250 million Apple shares and the expectation of a dividend increase, Warren Buffett could potentially earn around $1 billion per year from Apple's dividends.

Q: How does Warren Buffett feel about the Kraft Heinz deal?

Buffett openly acknowledges that Berkshire Hathaway overpaid for Kraft Heinz, recognizing the mistake and expressing his commitment to holding onto the stake despite overvaluation.

Q: What is the undisclosed major acquisition that Berkshire Hathaway almost completed in the fourth quarter?

Warren Buffett did not provide details about the deal that fell apart, but it is speculated that it could have been an acquisition of General Electric or General Motors due to Buffett's existing investments in those companies.

Summary & Key Takeaways

• Warren Buffett states that he would buy more Apple shares if the price declined further, but currently, he has not added to his position despite the recent sell-off.

• Buffett admits that Berkshire Hathaway overpaid for Kraft Heinz and highlights the importance of the business earning enough to justify the invested capital.

• Berkshire Hathaway was close to completing a major acquisition in the fourth quarter, but the deal fell apart for undisclosed reasons.