Apple’s shares have fallen by one-third of their value since 2015. Increased saturation in the smartphone market have led to a fall in sales of iPhones. It is unclear as to who took this decision – Warren Buffet or one of his portfolio managers.
Betting that Apple’s stock price will rebound after sales of iPhones fell for the first time, Berkshire Hathaway Inc. has disclosed that it has increased its stake in the company.
As of March 31, Warren Buffet’s Berkshire Hathaway held Apple shares worth $1.07 billion, as per details available from regulatory filings.
It is as yet unclear whether the increase in stakes in Apple Inc. was Buffet’s decision or one of his portfolio managers, Ted Weschler and Todd Combs, who invest $9 billion each.
Large investment decisions are typically taken by Buffet himself, while the smaller wagers are left to Weschler and Combs.
This decision essentially deepens Hathway Berkshire’s commitment in the tech sector, which incidentally, Buffet has shunned, with the only exception being International Business Machines Corp (IBM).
Last month, Apple had reported it first ever quarterly decline in 13 years. Increased saturation of smartphones in the market have hurt iPhones sales.
Looking to diversify, last week saw Apple’s CEO Tim Cook unveiling the decision to invest $1 billion in Didi Chuxing, a Chinese ride-hailing service.
Apple’s shares have fallen by nearly a third of their value since April 2015, however, thanks to Buffet’s interest, they rose by $2.13 to $92.65 in Monday morning trading.
“The stock is stunningly cheap, and it has a massive pile of cash,” said Steve Wallman, founder of Wallman Investment Counsel in Middleton, Wisconsin. He has Berkshire shares since 1982 and Apple since 2003. He went on to add, “Apple is not getting credit for research and development it is doing behind the scenes, which will eventually show up in new products.”
A spokeswoman for Apple did not immediately respond to requests for comments.
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