Warren Buffett’s bet on Apple gained $1 billion on Wednesday.
Buffett’sBerkshire Hathaway owns about 135 million shares ofApple. Apple released its third quarter earnings report after the bell on Tuesday and beat Wall Street’s expectations. Shares of the company rose 5.11% on Wednesdayfollowing the strong reportto $157.72.
Multiplying Berkshire Hathaway’s 135 million shares by the $7.67 rise in Apple’s stock price nets the holding company $1,035,319,579; more than $1 billion in a single day.
It’s worth noting that Buffett would have to sell his company’s shares at the current stock price in order to realize those gains. Berkshire Hathaway’s holding also could have changed slightly since it last disclosed it as well, which would affect the gains.
Apple was on the rise after reporting higher than expected earnings and revenue numbers.Stronger iPad and Mac sales contributed to the beat. Apple also released guidance for the fourth quarter which would suggest that previously expected delays in the launch of the iPhone 8 won’t be an issue for the company.
Berkshire added 73 million shares, about half of their total position in the first quarter of 2017, according to Bloomberg. The company has also publicized a large holding in Store Capital recently. Shares of Store shot up after Buffett announced his holding, butthen got downgraded by one Wall Street firm shortly after.
Shares of Apple are up 35.76% this year.