Despite the rally in the share prices of Apple and Amazon in the past three months, pushing the prices to all time highs, the trillion dollar companies are not the best performing stocks in Warren Buffet’s portfolio, over the past three months.
At the close of trading on the NYSE on Friday, the share price of Apple (AAPL) has climbed 53.74%, from its price on 1 May 2020 ($289.09) to $444.45 per share, while Amazon (AMZN) has increased by 38.56% to $3,167.46 per share from its price on 1 May 2020 ($2,286.04).
However, the star shares of the renowned Investor and Berkshire Hathaway CEO within this period is Restoration Hardware, a high-end furniture retailer, followed by a Brazillian digital-payments company, StoneCo.
Within the period in consideration, Restoration Hardware (RH) share price has more than doubled, rising 126.49% to $311.33 per share at the close of trading on Friday from its price on 1 May 2020 ($137.46). Whereas StoneCo (STNE) shares has surged 93.15% to $49.06 per share at the close of trading of Friday on the NYSE.
The 126% and 93% rise in the share prices of Restoration Hardware and StoneCo respectively, made the duo the best performers in Buffet’s portfolio from 1 May to the close of trading on Friday, 7 August.
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However, in terms of value, Apple is the most valuable stock in Buffet’s portfolio. Buffet owned about 245 million shares the iPhone maker according to Business Insider. At its closing price on Friday, these stocks are now worth about $110 billion. Thus, the share price movements of Apple, will have more impact in his stock portfolio. Similarly, Buffet’s is reported to hold $1.7 billion stake in Amazon.
On the other hand, Berkshire holds nearly 9% stake in Restoration Hardware amounting to over 1.7 million shares with first acquisition made in the third quarter of 2019, and 14.2 million shares in StoneCo (about 5% stake), which was bought in fourth quarter of 2018 according to Business Insider.
Assuming no adjustment to his holdings in these companies, the shares will be worth over $696 million for StoneCo and more than $529 million for Restoration Hardware as at Friday 7 August 2020.
The increases in Apple and Amazon stocks in the past three months has added over $1 trillion to their combined market capitalization while Restoration Hardware and StoneCo has added just over $10 billion to their combined market capitalization.
Written by;
Ifunanya Ikueze