Apple shares hit record after Buffett increases investment

Warren Buffett proves why investing in stocks beats gold
Shares of Apple updated the historical maximum
Author

05 May, 2018

Warren Buffett has revealed that Berkshire Hathaway bought 75 million shares of Apple in the first quarter of 2018, reports CNBC.

Warren Buffett typically doesn't like to say too much about the reasoning behind Berkshire Hathaway's buying and selling of individual securities. Moreover, he also said that if you look at the company, it probably earns almost twice as much as the 2nd most profitable firm in the US.

The Apple purchase, which would have cost between $11 billion and $14 billion, adds to the nearly 170 million shares that Berkshire Hathaway owned at the end of 2017, when it was already Buffett's biggest shareholding.

Berkshire typically discloses its largest common stock holdings and percentage stakes in its quarterly and annual reports. When it comes to investment, Warren Buffet is a name that nobody can forget and it is true that if his company brought such massive shares in Apple, it is evidence enough that the company is doing really well.

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Buffett told CNBC about the purchase ahead of Berkshire Hathaway's annual meeting this weekend. The numbers helped end a recent swoon in Apple stock on concern its flagship iPhone X model wasn't selling as well as Wall Street originally hoped.

Based on the Berkshire's 13F form that's dated December 31, there are positions in 45 companies listed.

Buffett has praised Apple Chief Executive Tim Cook and suggested he views Apple more as a consumer company, despite its Silicon Valley pedigree. Buffett said fretting about short-term iPhone sales is the equivalent of "worrying about the number of BlackBerrys 10 years ago", and that Apple is "an unbelievable business".

"It's the year of the woman, and I think we are doing a great job at a lot of different companies and I think Berkshire is no different", she said.


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