1 Tech Stock Taking up 40% of Warren Buffett’s Portfolio

Warren Buffett now has US$149 billion in cash, a new record! But he remains committed to this tech stock that takes up 40% of his Berkshire portfolio.

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Warren Buffett’s asset firm Berkshire Hathaway announced earnings this week, and there were a few surprises, to say the least. Or that is to say, a lack of surprises.

Warren Buffett’s investment firm continued its streak of selling off stocks, increasing this last quarter to selling US$2 billion in stocks. This brought the company’s cash float to a record high of US$149 billion!

While investors and analysts weren’t too thrilled that Warren Buffett wasn’t buying stocks, he did buy up one: his own. Buybacks soared in the last quarter, repurchasing US$7.6 billion in the last quarter.

Yet during all these sales, there was one company Warren Buffett continues to have on hand. And it now takes up a whopping 40% of his company’s portfolio.

The tech stock

Tech stock Apple (NASDAQ:AAPL) continues to take up 40% of Warren Buffett’s Berkshire portfolio. The commitment to the company remains after another strong quarter on October 28. Its fiscal fourth-quarter for 2021 saw record revenue hit $83.4 billion, up 29% year over year. And this comes before the holidays when Apple stock announced some new makeovers investors are looking forward to.

Apple stock will launch its M1-powered Macs and iPhone 13s right in time for the holidays. The news comes as the company capped off its “remarkable fiscal year of strong double-digit growth.” Record sales, performance, and strength of the company’s brand led to a return of US$24 billion to shareholders.

So it’s clear why Warren Buffett remains loyal to Apple stock. And it’s certainly one for Motley Fool investors to consider, especially as it’s fairly valued at this point. However, what about Canadian stocks on the TSX today?

A Warren Buffett tech stock on the TSX today

Let’s say you want to get in on the action of Apple stock, taking advantage of the Warren Buffett choice, but in the Canadian market. There are certainly ways to do it. You could find companies like Apple stock, sure. A tech stock doing similar things. Or you could link yourself directly to the source.

I like the latter option better. Apple stock remains strong, and it looks to do this well into the future. Better still, you can also gain access to the Electric Vehicle industry. So if you’re going to take advantage of the growth in Apple stock, I would consider Magna International (TSX:MG)(NYSE:MGA).

Rumour has it that Magna stock may be tapped by Apple stock to help develop its Apple car. The autonomous, electric vehicle will need a partner to create electronic parts. Magna stock is a top choice, already partnering with several automotive companies to create electric parts. It also has a partnership with LG Electronics to create those electric parts needs in both ICE and EVs. So it would be a prime choice for Apple stock to consider.

Magna stock currently trades at a valuable P/E ratio of 14.22 and EV/EBITDA of 7.22. Furthermore, it has a potential upside of 26% by analysts. And you get a dividend yield of 2.06% as of writing.

Foolish takeaway

It doesn’t look like Warren Buffett will be buying more stocks any time soon. But he does state that should the right opportunity come up, he’s willing to put US$80 billion into a company. Given his 40% investment in Apple stock, should a Magna deal come out, this could be his next top choice.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Apple, Berkshire Hathaway (B shares), and Magna Int’l.

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