No. of Recommendations: 11
And while Berkshire has never been afraid to put 10% of itself into a strong investment, I believe they (Buffett, Munger MHRIP, Abel, etc) all thought that 20+% is just too much.
I have heard a rumour that Amex reached about 40% of the Buffett Partnership portfolio, and that in the 1968 letter Mr Buffett even mentioned that that was their limit on position size.
Anyone able to check that?
Personally I think there is a simple one word answer to trimming the Apple position size: "China". That is just a guess, of course. The good price merely made that an easy call to make.
And also consider the bold section of this quote:
“I don’t mind at all, given current conditions, building a cash position. When I look at the equity markets and the composition of what’s going on in the world, we find it quite attractive.”
Jim
