A regulatory filing on Monday revealed Buffett’s Berkshire Hathaway owned more than 9.8 million shares in Apple as of March 31 – giving them about a $1 billion stake in the iPhone maker.
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When Berkshire Hathaway grabbed 9.81 million Apple shares valued at about $1.07 billion during the first quarter ending March 31, Apple had reported its first-quarter earnings results for the period ending December 31, in which it forecast weakening iPhone sales in the months to come.
Buffett’s wealth is derived mainly through Omaha, Neb. -based Berkshire, where for decades he has made shrewd, long-term investments in financial and manufacturing companies that earned him the nickname the “Oracle of Omaha”. The company’s almost 30 percent share slide since the middle of past year may have created an opportunity for Berkshire, even though Buffett typically avoids technology investments.
Mr Buffett’s investment deepens his commitment to the technology sector, which he has largely shunned apart from a big stake in IBM.
Warren Buffett, the billionaire financier known for avoiding tech stocks, may finally be embracing technology. This is apparent from the recent investment in Didi Chuxing, which could help Apple gain favour with the Chinese government.
Reuters first reported Buffett’s involvement on Friday.
Berkshire Hathaway has offered to be a potential finance partner for fellow billionaire Dan Gilbert’s bid to buy Yahoo, Berkshire Chairman and CEO Warren Buffett confirmed to CNBC.
Buffett didn’t immediately respond to a message from The Associated Press early Monday.
Chris Beauchamp, senior market analyst at IG, said: “Apple is beginning to look much more attractive than it did when it was trading above $120”. Last week, the company’s market value fell below that of Google parent Alphabet Inc, despite Apple’s having roughly three times more revenue and profit. According to TechCrunch, when investor Carl Icahn bought up $1 billion in shares in April 2013, he hoped he could get Cook’s attention and push a focus on Apple’s capital returns strategy.
Apple last month reported its first decline in revenue in 13 years, as growing competition hurt iPhone sales.
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David Tepper’s Appaloosa LP also shed his Apple stake in the first quarter, while Ray Dalio’s Bridgewater Associates cut its investment by two-thirds. Berkshire Hathaway’s share is now worth around $900 million.
