Apple shares rally following Buffett stock purchases

Apple shares rally following Buffett stock purchases

Apple shares rally following Buffett stock purchases

American climbed 2.5 percent in extended trading at 6:04 p.m.in NY, while Delta rose 1.8 percent. It had been climbing in recent quarters because of profit from Berkshire's dozens of subsidiaries and the redemption of securities that Buffett bought to fund deals. He has said that investments of less than $1 billion are likely to be the work of Ted Weschler or Todd Combs, who each handle about $9 billion for Berkshire.

Not all the picks in the portfolio are Buffett's. It means the new shares improved by $1.1 billion, and Berkshire Hathaway's total investment in Apple is now valued at $7.7 billion.

The fund brushed off several stocks in which it formerly held massive stakes.

Warren Buffett is taking a big bite out of Apple.

Buffett told talk show host Charlie Rose in an interview last month that it was "in large part" his decision to dive back into airlines.

Berkshire exited stakes in Kinder Morgan Inc., NOW Inc. and Deere & Co. The average 12 month price target among analysts that have issued ratings on the stock in the previous year is $78,441.00.

Apple gained 0.4 percent and finished at $135.51 on Wednesday. In a November filing, the company disclosed that it had taken stakes in American Airlines Group Inc., Delta Air Lines Inc. and United Continental Holdings Inc.as of September 30.

Even as Berkshire's stock picks are closely watched by investors, they've become less important to the company's overall performance.

Berkshire, based in Omaha, Nebraska, owns close to 90 companies including Dairy Queen, Geico insurance and BNSF railroad.

The airline investments, meanwhile, suggest that Buffett has overcome his two-decade aversion to the sector after an unhappy - though, he has said, profitable - investment in US Air Group.

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