Warren Buffet stated Berskshire has additionally bought 75 million Apple shares.
In a move that marks Warren Buffett’s, CEO of Berkshire Hathaway Inc, aggressive designs on Apple inc, he told CNBC that in the first three months of 2018 Berkshire had purchased an additional 75 million shares of Apple Inc.
Given Buffet’s historical aversion towards companies in the tech sector, his commitment to Apple, over the last two years, has surprised many investors and analysts.
Although Berkshire’s initial investment in Apple was relatively small, his latest purchase of Apple’s shares have swollen his share holding to 240.3 million, worth $42.5 billion.
“If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States,” said Buffett to CNBC
As of February 2018, Berkshire’s stake in Apple grew by nearly 23% from end of September 2017.
While heaping praise on Apple’s CEO Tim Cook, Buffet said, he views the company as a consumer company rather than a technology one despite Apple having a Silicon Valley pedigree.
Naturally, there is another reason for Berkshire’s investment in Apple. Its more than two years that Berkshire was involved in any major acquisition; in his annual letter, Buffet had stated he wants one or more “huge” non-insurance acquisitions to help him reduce Berkshire’s $116 billion in cash and equivalents.
Increasing Berskshire’s stake in Apple accomplishes just that.
For the last quarter ended March 31, Apple had reported revenues of $61.1 billion, up from $52.9 billion from the previous year. Apple has also stated it will buyback $100 billion worth of its stock.