Last Week’s Apple Shake‑Up
Quick newsflash: the legend of investing, Warren Buffett, swooped away $800 million (S$1.1 billion) worth of Apple shares in the final quarter of last year.
Wow, that sounds like a fortune. But as with all good stories, context is key.
So How Big is That?
- Buffett’s Berkshire still owns roughly $76 billion of Apple stock.
- The sale? Just 1% of the holdings.
Take a breath, folks—this isn’t the apocalypse.
From “Tech Aversion” to “Tech Adoration”
Back in the late ’90s, Buffett loudly warned against buying tech stocks. He’d cry over the dot‑com bubble burst in 2000, and most of those meme‑powered companies went belly‑up.
Fast forward to today: his biggest single holding is Apple—more than 30% of his portfolio, dwarfing his long‑time favorites like Coca‑Cola, American Express, and Wells Fargo.
So, what changed?
The Internet Revolution
- 2000: ≈300 million internet users.
- 2010: ≈2 billion users.
- Today: ≈4.5 billion users.
The web became a vital part of everyday life, and the most valuable companies are the ones that run it—think Apple, Alphabet, Microsoft, Amazon, & Facebook.
Adapt—Then Adapt Again
Buffett’s having fun reinventing himself—he’s 90 soon, but the Oracle of Omaha still pulls lessons from his guru Ben Graham and his partner Charlie Munger.
Remember when he stuck with USAir for five painful years? He called airlines “death traps” in 2013, but in 2016 he staked $10 billion on airlines after the industry had changed.
Bottom line: he learns. You should, too.
Why It Matters
Let’s talk numbers:
- All stock holdings ~$250 billion.
- Cash on hand ~$128 billion.
- Dividends he’ll get this year ~$4.5 billion.
So, expect a pile of cash on his table—not a trick question.
The Advantage of Being a Small Investor
We don’t have corporate treasure piles to allocate. That’s actually a blessing. We’re not limited to the “big‑money” playbook.
You can spice up your portfolio with dividend‑rich stocks that Buffett can’t touch. In Singapore, there’s a nice mix of high‑yield companies that beat out the 2.5% CPF Ordinary Account.
Don’t sweat the “no billions” curse—focus on learning what works for you, and use Buffet’s wisdom as a guide, not a rule‑book.
© The Smart Investor – This article is for general info only, not professional advice.
