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1/3 Buffett's $AAPL inv. is notable for a few reasons:
1) Scale: obviously hard to double/triple tens of billions of dollars.
2) He did it in the most covered stock on the planet.
3) It was obvious: $AAPL ROIC + BS are superior to the S&P 500, yet it traded at a discount.
1) Scale: obviously hard to double/triple tens of billions of dollars.
2) He did it in the most covered stock on the planet.
3) It was obvious: $AAPL ROIC + BS are superior to the S&P 500, yet it traded at a discount.
2/3 Obvious in hindsight, but I think it was quantitatively not that hard to make a case in the $100's that Apple was undervalued given the quality of the business.
The trade was also uniquely Buffett: waiting for a really fat fat pitch and then slugging the hell out of it.
The trade was also uniquely Buffett: waiting for a really fat fat pitch and then slugging the hell out of it.
3/3 We can't all replicate Buffett's heron style (waiting patiently for a strike), but we can think:
1) just because something is in plain sight does not mean others have clued into it.
2) If it's a no brainer, go big.
1) just because something is in plain sight does not mean others have clued into it.
2) If it's a no brainer, go big.
