Published: Sat, May 05, 2018
Money | By Wilma Wheeler

Buffett takes another bite of big Apple

Buffett takes another bite of big Apple

Buffett's increased stake, which was confirmed by a representative of the billionaire investor, pushed Apple's shares up as much as 4.2 percent to $184.25, taking the company's market value to about $906 billion.

Daniel Morgan, an investor in Apple, said it is "not surprising to see Buffet take a big position" in the company.

Veteran investor Mr Buffett disclosed the purchases by his Berkshire Hathaway fund on CNBC late on Thursday, ahead of the investment giant's shareholder meeting this weekend.

Buffett called Apple an "unbelievable company", and pointed out that it makes far more profit than any other American corporation.

It's always a colorful event, with CEO Warren Buffett putting on a show that is doubtless the most fun among major US companies' investor events. His Apple investment has performed better, but Buffett has also said he missed out on investing in Google and Amazon.com Inc.

Berkshire Hathaway Inc is a holding company owning subsidiaries engaged in various business activities.

In reaction, AAPL stock is up 1.1% out of the gate to trade at $178.86, on track for a fifth straight gain - which would mark its longest winning streak since mid-February. If a company flounders because of management missteps, the industry turns against it or Warren Buffett is just plain wrong in his reading of the economic cycle, he will not hesitate to cut and run, no matter how illustrious the name.

"The idea that you're going to spend loads of time trying to guess how many iPhone X ... are going to be sold in a 3 month period totally misses the point", Buffett says.

According to a report from CNBC published Thursday night, the new shares add to the more than 165 million shares Berkshire held at the end of 2017. Buffett has sold down his stake over the past year after saying his thesis was flawed when he plowed more than $10 billion into IBM in 2011.

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