Warren Buffett Speaks About Why He Chooses Apple Stock

10 May, 2018, 00:40 | Author: Sidney Guerrero
  • Warren Buffet and Bill Gates seal their 27-year friendship with a game of cards after the Berkshire boss reveals their closeness is the reason he refuses to buy a Microsoft stock

Although Warren Buffett regrets not buying Google and Amazon stock, he isn't making the same mistake with Apple. Berkshire owned $40.7 Billion of Apple share at the end on Q1,2018 rising by 12.59 %, as they owned $28.2 billion at the end of 2017.

Berkshire Hathaway's substantial purchasing of stock of 250 million from Apple has left it as it's largest holding.

The note pointed out that Buffett is a big fan of Apple stock, which he upped his company's stake in Friday, sending the stock higher.

After the US-based company, Apple released their earnings report, shares of the company saw a significant boost and when the legendary investor Warren Buffett revealed that Berkshire Hathaway picked up nearly 75 million shares of Apple during the March quarter.

"And you get that and it will feed off itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings", Buffett said. "We're betting on the success of Apple products like the iPhone, and I see characteristics in that that make me think it's extraordinary", Buffett said. There is no reason at all for me to encourage other people to buy Apple.

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After offering its first stock buyback in August 2012, Apple has bought back $200 billion worth of stock, and just announced last week that it would repurchase an additional $100 billion in its shares.

Berkshire Hathaway is now the third largest shareholder of Apple.

Apple is riding high on glowing comments from legendary investor Warren Buffett - enough that experts say the iPhone maker could soon become the first company to touch a US$1 trillion ($1.4t) market capitalisation.

Although investors enjoy speculating on which companies Apple should acquire, Buffett, ironically, is quite pessimistic about its M&A potential.

Not only did Apple made iPhone sales in March quite strong, the CEO, Tim Cook boasted during a subsequent earnings conference, saying that the iPhone X was the most popular iPhone model for every single week during the quarter. "With the passage of time, we may own 6 or 7 percent because they repurchase shares".

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