Warren Buffett did something strange with his shareholding in Apple

Coincidence or master plan? Warren Buffett now owns exactly the same number of shares Apple as he does Coca-cola after the tech company was cut in half.

Many Buffett followers made this curious observation after a regulatory “13-F” filing was unveiled Wednesday evening Berkshire Hathaway‘s share ownership at the end of the second quarter. It showed an identical number of 400 million shares in Apple and Coca-Cola, Buffett’s oldest and longest holdings.

It has led some to believe that the ‘Oracle of Omaha’ is done selling his stake in the iPhone maker.

“If Buffett likes round numbers, he may not be looking to sell any more shares of Apple,” said David Kass, a professor of finance at the University of Maryland’s Robert H. Smith School of Business. “Just as Coca-Cola is a ‘permanent’ holding for Buffett, so too can Apple.”

The 93-year-old legendary investor first bought 14,172,500 shares of Coca-Cola in 1988 and increased his stake in the following years to 100 million shares in 1994. The investor has therefore kept his stake in Coca-Cola stable in almost the same round . -number of shares over 30 years.

As a result of two rounds of 2-for-1 stock splits in 2006 and 2012, Berkshire’s Coca-Cola holding grew to 400 million shares.

Buffett said he discovered the iconic soft drink when he was just six years old. In 1936, Buffett started buying six Cokes at a time for 25 cents each at his family’s grocery store, then selling them for five cents more nearby. Buffett said he then realized the product’s “extraordinary consumer appeal and commercial potential.”

Decrease Apple stock

Investing in tech powerhouses like Apple may seem to defy Buffett’s long-standing principles of value investing, but the famed investor has treated the company as a consumer products company like Coca-Cola rather than a technology investment.

Buffett has touted the iPhone’s loyal customer base and said people would be more likely to give up their cars than their smartphones. He even called Apple the second most important company after Berkshire’s cluster of insurers.

So it was shocking to some when it was announced that Berkshire had dumped more than 49% of its stake in the iPhone maker in the second quarter.

Many suspected it was part of portfolio management or a broader overall market view, rather than a judgment on Apple’s future prospects. The sale dropped Apple’s weighting in Berkshire’s portfolio from nearly 50% at the end of last year to about 30%.

And now that the price has stabilized at this round number, it appears that Buffett is favoring his most beloved and longest-held stocks.

Still, some said it could be purely a coincidence.

“I don’t think Buffett feels that way,” said Bill Stone, chief investment officer at Glenview Trust Company and a Berkshire shareholder.

But at Berkshire’s annual meeting in May, Buffett did compare the two and noted that the holding period for both was unlimited.

“We own Coca-Cola, a great company,” said Buffett. “And we own Apple, which is an even better company, and unless something really special happens, we will own Apple, American Express and Coca-Cola.”