Berkshire Hathaway's Warren Buffett points to Apple's earnings as reason for continued inv...

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in AAPL Investors
Berkshire Hathaway will continue to hold its considerable stake in Apple, notable investor Warren Buffett has advised, with the iPhone maker's latest quarterly results showing why the investment fund has put multiple billions into the company.




"We haven't changed our [Apple] holdings," claimed Buffett on Thursday, ahead of this weekend's annual shareholder meeting for Berkshire Hathaway, held in Omaha. The fund's 2018 annual letter revealed the company owned more than $40 billion worth of stock at the end of the year, excluding the 32% increase in value the shares have received so far in 2019.

On the latest quarterly results, Warren Buffett remarked to CNBC "I was pleased with what they reported," before highlighting the company never makes investment decisions based on just one quarter's results. "What they talked about and reported is consistent with the reason we on $50 billion-plus of Apple."

Buffett also commented on the reduction of its holdings in Apple on December 31 to 249.6 million shares, decreasing by almost 3 million shares in the fourth quarter, advising it wasn't a sale under his direction. It was suggested one staff member that owns "a little over 1% of our holdings in the office" may have made the sale, but Buffett admits "I have no reason to think he's bought or sold Apple."



The "Sage of Omaha" previously commented on Apple's potential, claiming in February "If it were cheaper, we'd be buying it," referring to the shares. "I don't see myself selling - the lower it goes, the better, I like it, obviously." In August 2018, Buffett explained he found Apple to be a reliable investment for the moment.

Buffett has also issued doubts on Apple TV+ becoming an immediate success, but that its failure could be a good thing to the company. "I'd love to see them succeed, but that's a company that can afford a mistake or two," he said in March, adding "You don't want to buy stock in the company that has to do everything right."

Berkshire first bought into Apple in 2016 with shares worth around $1 billion, and has repeatedly acquired more shares in the company. The fund, under Buffett's direction, typically avoids technology stocks, but made an exception for Apple, and as of Thursday, revealed it was buying shares in Amazon.

The shareholder meeting will be attended by tens of thousands of investors, keen to hear Buffett's investment strategies, market outlook, and his succession plan.

Comments

  • Reply 1 of 10
    Ahem...”Oracle of Omaha”, not “Sage of Omaha.”  
    stompylkrupp
  • Reply 2 of 10
    StrangeDaysStrangeDays Posts: 7,312member
    Oh but the armchair executives who have done absolutely nothing in real life continually tell us Apple and Cook are doing it wrong! And the Communist Party chinese knockoffs can do no wrong!
    lkruppbeowulfschmidt
  • Reply 3 of 10
    maestro64maestro64 Posts: 4,527member
    When you're making $766M ever year on dividends why would you sell and you also seeing capital appreciation. 
  • Reply 4 of 10
    tmaytmay Posts: 3,661member
    Totally off topic, but of note;

    https://www.sec.gov/news/press-release/2019-66?hootPostID=4ea2aefa88f47dcc77e43e2ecbcf03c0

    SEC Charges Sapphire Glass Manufacturer and Former CEO With Fraud


  • Reply 5 of 10
    MalcolmOwenMalcolmOwen Posts: 11member, editor
    Ahem...”Oracle of Omaha”, not “Sage of Omaha.”  
    As per the Wikipedia page for the man: 
    ...he has been referred to as the "Wizard", "Oracle", or "Sage" of Omaha by global media outlets.
    i think we can get away with calling him that.
    minicoffee
  • Reply 6 of 10
    Johan42Johan42 Posts: 156member
    Ahem...”Oracle of Omaha”, not “Sage of Omaha.”  
    Ahem...he’s also been referred to as the “Sage of Omaha.”
    lolliver
  • Reply 7 of 10
    22july201322july2013 Posts: 577member
    Using the same tired alliterative cliches isn't intelligence, it's insipidness. Why not be creative and use his home state instead of his city: eg, "The Nostradamus of Nebraska"? I didn't use google to see if that phrase has already been used. I would prefer reading writing that challenges me with novel phrases.
  • Reply 8 of 10
    SpamSandwichSpamSandwich Posts: 31,007member
    He may look like he’s all smiles and grandfatherly advice, but he’s as self-interested as any one of us on these matters.
  • Reply 9 of 10
    He may look like he’s all smiles and grandfatherly advice, but he’s as self-interested as any one of us on these matters.
    And there's not a damned thing wrong with that.
    jony0
  • Reply 10 of 10
    SpamSandwichSpamSandwich Posts: 31,007member
    He may look like he’s all smiles and grandfatherly advice, but he’s as self-interested as any one of us on these matters.
    And there's not a damned thing wrong with that.
    I agree with you. It’s the media which treats him like a non-self-interested elf because of his politics which is the annoyance.
    beowulfschmidt
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