Users won't give up their iPhones for $10K, and that makes Apple 'wonderful' says Warren B...
Warren Buffett says his investment firm believes Apple is a "wonderful business," and especially that it has been managed extraordinarily well by Tim Cook.
Following the news that Berkshire Hathaway sold off 85% of its shares in Apple's processor manufacturer TSMC after just a few months, its CEO Warren Buffett says he's not considering selling any Apple stock. He previously cited international trade tensions with China as a reason to sell TSMC, and despite choosing to stick with Apple, he says his firm did consider the same issues.
"I weigh that in," Buffett told CNBC "Squawk Box" presenter Becky Quick, "...but Apple is an incredibly valuable utility."
"If you're an Apple user and somebody offers you $10,000, with the the only proviso [that] they'll take away your iPhone and you'll never be able to buy another," he said, "you're not going to take it."
"If they tell you [that] if you buy another Ford motor car, they'll give you $10,000 not to do that," he continued, "[you'll] take the $10,000 and buy a Chevy instead."
"I mean, it's a wonderful business," said Buffett. "We can't develop a business like that, and so we own a lot of it. And our ownership goes up over time."
Saying that Apple CEO Tim Cook cares about the misuse of his firm's devices, Buffett said that he thinks that "Tim Cook is the classiest CEO."
"He understands the business and he has a product which Steve Jobs basically announced," continued Buffett, "[but] Tim Cook has managed that company in an extraordinary way and I love it."
Ask by Quick whether this means Berkshire Hathaway will ever sell Apple stock, Buffett started to say no, and emphatically so. But then he did admit to an occasion when it had done so.
"No, there was one [point where], actually from a tax standpoint, it was a good idea to sell some," he said. "And it was a dumb sale."
Buffet says that his firm now owns 915 million cash shares in Apple, and that he gets asked about putting so much money into a single company. "Well, we've got a railroad worth [a] similar amount," he explains, "we've got a utility business worth [a] similar amount."
Berkshire Hathaway now owns 5.8% of Apple stock. The billionaire investor has previously described Tim Cook as a "fantastic manager" of Apple.
Read on AppleInsider
Following the news that Berkshire Hathaway sold off 85% of its shares in Apple's processor manufacturer TSMC after just a few months, its CEO Warren Buffett says he's not considering selling any Apple stock. He previously cited international trade tensions with China as a reason to sell TSMC, and despite choosing to stick with Apple, he says his firm did consider the same issues.
"I weigh that in," Buffett told CNBC "Squawk Box" presenter Becky Quick, "...but Apple is an incredibly valuable utility."
"If you're an Apple user and somebody offers you $10,000, with the the only proviso [that] they'll take away your iPhone and you'll never be able to buy another," he said, "you're not going to take it."
"If they tell you [that] if you buy another Ford motor car, they'll give you $10,000 not to do that," he continued, "[you'll] take the $10,000 and buy a Chevy instead."
"I mean, it's a wonderful business," said Buffett. "We can't develop a business like that, and so we own a lot of it. And our ownership goes up over time."
" @tim_cook is one of the classiest CEOs and he understands the business. Tim Cook has managed that company in an extraordinary way," says Warren Buffett on $AAPL. "It's a wonderful business so we own a lot of it." pic.twitter.com/1lVUNIfgnT
-- Squawk Box (@SquawkCNBC)
Saying that Apple CEO Tim Cook cares about the misuse of his firm's devices, Buffett said that he thinks that "Tim Cook is the classiest CEO."
"He understands the business and he has a product which Steve Jobs basically announced," continued Buffett, "[but] Tim Cook has managed that company in an extraordinary way and I love it."
Ask by Quick whether this means Berkshire Hathaway will ever sell Apple stock, Buffett started to say no, and emphatically so. But then he did admit to an occasion when it had done so.
"No, there was one [point where], actually from a tax standpoint, it was a good idea to sell some," he said. "And it was a dumb sale."
Buffet says that his firm now owns 915 million cash shares in Apple, and that he gets asked about putting so much money into a single company. "Well, we've got a railroad worth [a] similar amount," he explains, "we've got a utility business worth [a] similar amount."
Berkshire Hathaway now owns 5.8% of Apple stock. The billionaire investor has previously described Tim Cook as a "fantastic manager" of Apple.
Read on AppleInsider
Comments
$10,000 would not change my life but I'd still have to consider the offer, if there were one. I've been enjoying the iPhone since the first model but $10k to switch to other phones that are also highly regarded? Maybe.
I'm not young but I still expect the iPhone (and similar devices) to become quaint vintage electronics within my lifetime, replaced by something cooler - maybe from Apple and maybe not - so I don't consider such a decision would have a "lifetime" impact.
Another potential in-my-lifetime scenario is the pessimistic one in which everything goes to crap and which phone we use becomes a non-issue.
That’s a very silly statement. Most people I know would take it in a heartbeat. Lose the iPhone, that would be unfortunate, but $10k would get me a nice Mac, and other things that would make up the difference.
I hear you about Windows though. I put in 15 years managing Windows systems, and no thank you they couldn’t pay me enough to go back.
I see so many seemingly uneducated people going around bashing Tim Cook, and many of those same people praise Steve Jobs at the same time. I personally choose to praise both Steve and Tim.
My gut says that Tim could do Apple better if he would get involved more like Steve did; but Tim lacks that ability, so I fully understand why he sticks with what he knows. And he knows a lot more than his critics in online forums, let me tell you. Folks who trash Tim aren't long-term AAPL shareholders like myself and Buffett. These folks complain about anything, pretty much, despite the fact they've never done anything ground-breaking in their own lives. It's easy to be a do-nothing and still chastise others.
Tim is doing a great job. Buffett knows that. I know it too. People who don't know it simply need to be educated on the reality. And the fast-track to that education is to buy AAPL and/or Berkshire Hathaway and not sell for at least 10 years — I own both. My AAPL purchases began in 1999, and through the years, I've never sold a single share. Is that what we call "smart investing"? Yes. Oh yes.
As to all the dialog about $10k, it's funny how most people are still missing the point. Most iPhone users don't want to switch. That's the point. But if someone really did offer you $10k to switch and you did just that, would you do the intelligent thing and dump that $10k in to AAPL or Berk.B? Most Americans probably wouldn't, and therein lies the fundamental problem. When reading anything about Buffett, you need to LISTEN. And what you area listening to is an intelligent talk of INVESTING, not spending like mad, be that spending to buy something you like or spending to merely pay off bills. Spend less. Save more. Wait for the gains to accrue over time.
The fact some people here would give up the iPhone only provided they can keep their Mac and access iOS via an iPad just further drives Warrens point home.
It would be interesting if a survey/research has been conducted on this and if not if it is done in the future. How much of an incentive would be required to get someone to leave the Apple/Microsoft/Android platforms? How would this compare to other consumer product markets?
$10,000 wouldn't be enough for me to leave the Apple ecosystem, but I'm sure there would be a point that would push me to ditch it. For some people it would take less than $10,000. Especially if they just use one Apple device like the iPhone but maybe use Windows for their PC.
Samsung phones have been far superior, cheaper and better value for money for 7 plus years now, and they have foldable screens. Many of the great innovations such as wireless charging, 5g, foldable screens, allowing 3rd party mice and keyboards, hires zooms, hires images, better waterproofing, fast charging via USBC, stronger screens etc and so n much more. What did apple do? Get rid of the 3.5mm port, get rid of the power adaptor, continue to use out of date charging methods?
Thank god for Samsung, Google and Oppo, otherwise we will still need using iPhone 7 era tech. Admittedly the iPhone 7 was i recall a better reception phone than any current iPhone.
Please send me 10k Warren. I'm not fooled by their marketing.
I should qualify that. Back many years ago when I paid serious money for an Apple desktop, had I known how this would play out, I would have spent the $6K on Apple stock instead. Would have had enough money to buy a house, even with today’s prices. Do I wish I had traded a computer for a decent house years later . . .