If you are looking to invest in the U.S. stock market, here are a few pointers from billionaire investor Warren Buffet.
On Monday, the Chairman and CEO of Berkshire Hathaway Inc told CNBC that his conglomerate had purchased 120 million shares of Apple in 2017.
He also disclosed that, in his opinion that the U.S. stock was not in “bubble territory.”
“Apple strikes me as having quite a sticky product,” said Buffett.
He also stated that Berkshire’s holds 133 million shares of Apple, and at their current market rate their worth is around $17 billion, making it Berkshire’s second-biggest holding.
While congratulating Tim Cook’s performance in Apple’s as a “terrific job” he clarified that he bought the company’s shares only based on its earnings report.
Significantly, Buffet told CNBC with interest rates at their current levels, the U.S. stock market was cheap, hinting that it is a good time for investors to get it.
Berkshire has sunk in nearly $20 billion in the market before the results of the November 8 U.S. elections.
On a cautionary note, the billionaire investor stated that in the near term the U.S. equity market could conceivably “go down 20 percent tomorrow” and that it was extremely difficult to find a floor in stock prices in the current market.
While commenting on the airlines industry, Buffett stated that his position remains unchanged. Pricing of airline shares have historically been a “very tough game” and that Berkshire doesn’t hold any share of the four airlines.