Warren Buffett bets big on Apple

Editor’s note: This is wonderful news for one of Northern California’s iconic companies. 

“Warren Buffett’s multinational conglomerate Berkshire Hathaway bought 75 million additional Apple shares in the first three months of the year,” as the Daily Mail and other media are reporting this morning. “The huge investment comes after Buffet described Apple as an ‘unbelievable company’.

“Berkshire Hathaway’s commitment to Apple over the past two years has surprised many, given Buffett’s historical aversion to companies associated with the technology sector.

“Berkshire’s initial investment in Apple was small, suggesting it was made by one of Buffett’s investment deputies.

“However, since the latest stake purchase, it has grown to a solid 240.3 million shares worth $42.5 billion.

“‘It is an unbelievable company,’ CNBC quoted Buffett as saying. ‘If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States’, he said.

“The billionaire investor recently sold out of an unsuccessful investment in International Business Machines (IBM), at the same time he was buying Apple.

“Berkshire said in February that the company’s stake in Apple grew by about 23 per cent since the end of September to roughly 165.3 million shares.”

The rest of the article is here.

Author: jeffpelline

Jeff Pelline is a veteran editor and award-winning journalist - in print and online. He is publisher of Sierra FoodWineArt magazine and its website SierraCulture.com. Jeff covered business and technology for The San Francisco Chronicle for years, was a founding editor and Editor of CNET News, and was Editor of The Union, a 145-year-old newspaper in Grass Valley. Jeff has a bachelor's degree from UC Berkeley and a master's from Northwestern University. His hobbies include sailing and trout fishing.

One thought on “Warren Buffett bets big on Apple”

  1. It’s also worth noting that three of the four the “FANG” stocks — Facebook, Amazon, Netflix and Google — are based in California. (Amazon is based in Seattle). Don’t let the naysayers crap on California. It’s a leader in business innovation. Oh, and it’s progressive. lol.

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