When Warren Buffett reshuffles the stock portfolio of his investment giant Berkshire Hathaway (BRK.A, BRK.B), Wall Street takes notice.
The legendary "Oracle of Omaha" surprised many with a filing with the SEC that detailed his updated holdings, most notably with the inclusion of more than $1 billion in Apple (AAPL) stock. Shares of Apple jumped nearly 4% on the day.
And Real Money's Jim Cramer and Jack Mohr, co-manager of Cramer's Action Alerts PLUS charitable trust, were quick to note that Buffett's Apple purchase underscores his savvy in picking stock's of long-term value. (Apple is an Action Alerts Plus holding.)
"While one fund's investment -- Berkshire or otherwise -- should never be used as the sole reason to own a particular stock, Berkshire is the consummate value investor, investing in high-quality companies it believes to be trading at a discount to its intrinsic value," they said in a Monday report.
"Bottom line: Although the path to value creation will inevitably take time, we continue to view Apple as a stock that should be owned, not traded," Cramer and Mohr added.
But investors should not overlook the other major shake-ups in Buffett's portfolio, including scrapping his 46.6-million-share holding in AT&T (T), a stake valued at more than $1.8 billion. Shares of the telecom giant are up 14% over the past 12 months. (AT&T stock is part of the portfolio of Real Money partner Trifecta Stocks.)
According to his fund's SEC filing, Berkshire also beefed up his his stake in Houston-based energy giant Philips 66 (PSX) by more than 14 million shares, or roughly $1.1 billion. Shares of Philips 66 are down 4% so far on the year.