Tumbling Apple Inc’s shares are a dream come true for Warren Buffett

Warren Buffet sees Apple Inc more as a consumer company rather than a tech stock, which essentially reflects Apple’s devices as essential household possessions for consumers.

For billionaire investor Warren Buffett, the falling prices of Apple Inc’s shares are music to his ears. He has stated, he would love to see the shares of Apple Inc decline so that he could buy even more.

Apple’s warning of weak iPhone demand in the holiday shopping season along with slowing sales in China have sent its stock down by 7.5% in after-hours trading.

Class B shares of Buffett’s Berkshire Hathaway Inc were seen trading down by 2% in the same session on Wall Street.

For Buffet, the development is a blessing in disguise.

Known for buying stocks of energy firms and classic American corporate brands rather than tech stocks, Buffet had earlier lamented that he had missed the boat on buying shares of U.S. technology giants.

And yet, Buffett has made Apple a centerpiece of his portfolio saying at his annual shareholders’ meeting in Omaha in May 2018, “We would love to see Apple go down in price,” so he could buy more at a bargain.

For Buffet, Apple is more of a consumer stock rather than a tech stock – thus reflecting Apple’s devices as essential possessions for consumers.

After Wednesday’s stock market tumble, Apple’s market capitalization fell below $700 billion from its $1.1 trillion peak in October 2018. Despite the fact that Apple’s shares have fallen behind that of Amazon.com Inc and Microsoft Corp in value, it still remains one of Wall Street’s most widely held companies.

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