ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • FIIs buy shares worth Rs 3,040 cr on August 12, highest this month; net purchase at Rs 14,841.66 crore
  • Independence Day Special: How investment habits, preferences of people have changed over the past 75 years
  • Laal Singh Chaddha Vs Raksha Bandhan box office collection: How much money Aamir Khan, Akshay Kumar movies made in two days
  • Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert de
  • 31 new malls coming soon in India: Set to spawn massive jobs, employment opportunities
Read in App
Business News » World News

Apple plunge deepens Warren Buffett's book value woes

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

The plunge in Apple Inc`s share price will likely cause new pain for Warren Buffett`s Berkshire Hathaway Inc , after the conglomerate suffered a big quarterly decline in its net worth that will hit its bottom line.

Berkshire`s share price fell more than 4 percent on Thursday after Apple, its largest common stock investment, slashed its revenue forecast after demand fell in China and fewer customers upgraded their iPhones. Apple slid as much as 10 percent.

The Berkshire decline reflects Apple`s impact on the Omaha, Nebraska-based company`s book value, which measures assets minus liabilities and is a favoured growth gauge for Buffett.

It followed a fourth-quarter slump in stock prices that may have already cost Berkshire 8.2 percent of its book value, according to Keefe Bruyette & Woods analyst Meyer Shields.

Much of Berkshire`s roughly $219 billion of equities as of Sept. 30, including its stake in Kraft Heinz Co , suffered double-digit declines in the quarter, when the S&P 500 <.spx> including dividends fell 13.5 percent.

Among Berkshire`s 10 largest stock holdings, only Coca-Cola Co escaped the carnage, rising 2.5 percent. Shields said a 9 percent drop in Apple could reduce Berkshire`s book value another 0.74 percent.

Buffett`s assistant did not respond to an email concerning whether the billionaire`s view of Apple has changed.

Berkshire began investing in Apple in 2016. Buffett then ramped up the stake as he exited IBM Corp , an investment that had broken his usual aversion to technology stocks.

IBM proved mediocre. Yet while many investors consider Apple a technology stock, Buffett views it more as a consumer stock, reflecting the dependence of so many people on their iPhones.

He told shareholders at Berkshire`s annual meeting last May that he would "love to see Apple go down in price" so he could buy more.

Assuming Berkshire hasn`t sold any shares, the value of its 5.3 percent Apple stake had fallen below $36 billion on Thursday from $57.6 billion on Sept. 30.

A big drop in book value could push Berkshire to an overall fourth-quarter net loss, even if its dozens of operating businesses, including the BNSF railroad and Geico auto insurer, perform well.

Accounting rules require Berkshire to report unrealized investment losses with quarterly results, and Buffett has urged investors to ignore the resulting swings. It last posted a net loss in the first quarter of 2018.

Berkshire`s operating businesses provided a cushion during the global financial crisis in 2008, when book value fell just 9.6 percent. The S&P 500 including dividends fell 37 percent.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Fri, Jan 04, 2019
12:29 am
Reuters
RELATED NEWS
11% growth possible in next decade if India does this, says RBI Deputy Governor Michael Patra 11% growth possible in next decade if India does this, says RBI Deputy Governor Michael Patra
Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert decodes Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert decodes
UK economy contracts in 2nd quarter as recession fear grows UK economy contracts in 2nd quarter as recession fear grows
July retail inflation softens to 6.71% from 7.01% in June July retail inflation softens to 6.71% from 7.01% in June
OPEC cuts oil demand forecasts as economic growth slows OPEC cuts oil demand forecasts as economic growth slows

LATEST NEWS

Laal Singh Chaddha Vs Raksha Bandhan box office collection: How much money Aamir Khan, Akshay Kumar movies made in two days

IDBI stake sale: Divestment department working on it but no timeline from govt for selling stake, says LIC chairman

31 new malls coming soon in India: Set to spawn massive jobs, employment opportunities

Azadi Ka Amrit Mahotsav: ITC launches integrated initiatives to support Har Ghar Tiranga campaign to mark 75 years of Independence

Asus ROG Zephyrus G15 quick review: Powerful machine for gamers

Cultivation of maize, mustard, moong to be promoted: ICAR

Shriram Properties Q1 Results 2022: Profit jumps on better sales in June quarter | Check June quarter highlights

Independence Day: List of patriotic TV serials, web series, audio shows to watch and listen to

South Central Railways gets first train with Vistadome coach: What you need to know about features of this coach

Ensure loan recovery agents do not resort to harassment while collecting debts: RBI tells companies

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV