Buffett Takes Bigger Bite of Apple
Warren Buffett said in a CNBC interview that his Berkshire Hathaway Inc. more than doubled its stake in Apple Inc. last month, and now owns about 133 million shares of the most valuable public company in the U.S. Berkshire’s Apple stake is worth about $18 billion, making the tech giant one of its largest equity holdings. Apple shares have climbed 18 percent so far this year, closing at $136.93 a share on February 27.
Buffett has traditionally avoided tech stocks, saying that he does not understand the business. However he said that Apple is a consumer product he does understand. Buffett suggested that he understood Apple after asking his great-grandchildren and their friends about how they use their iPhones. Said Buffett, “The degree to which their lives center around it is huge.” Berkshire has spent $20 billion buying stocks since just before the November election, partly as a way for the company to put its cash to work.
The conglomerate had $86 billion of cash at year-end. Said Buffett, “We had the money, and I like investing. I would so much rather have that than have the money in Treasury bills.”