There's Only One Warren Buffett

Carlton Robbins
May 10, 2018

Berkshire Hathaway's substantial purchasing of stock of 250 million from Apple has left it as it's largest holding.

"I clearly like Apple".

The note pointed out that Buffett is a big fan of Apple stock, which he upped his company's stake in Friday, sending the stock higher.

"And you get that and it will feed off itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings", Buffett said.

"Apple's an awesome company, and the multiple's not enormous, the top tech companies do have a very strong profit position right now but Apple has most of all".

But there's another reason Buffett loves Apple besides its tech gadgets: Apple's massive cash hoard, which allows it to buy back a lot of its own stock.

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While stock buybacks are a controversial way for companies to spend cash that they could otherwise invest in growth or acquisitions, Buffett said that in Apple's case it makes sense.

The legendary investor also threw shade on day traders, who he said totally miss the point of investing in a company like Apple.

He said investors are now much better off owning United States stocks, whose prices are elevated but not in a "bubble", and it would take a "nanosecond" for him to choose stocks over 10- or 30-year U.S. government bonds now yielding around 3%. In March, its shares briefly crossed the $925 billion mark, but recent market volatility and concerns over the company's iPhone business sent Apple's stock lower. "It's worked for us in many other situations".

"Apple's an fantastic company, and the multiple's not very big", he added. "We buy them to hold", Buffett told CNBC.

Not only did Apple made iPhone sales in March quite strong, the CEO, Tim Cook boasted during a subsequent earnings conference, saying that the iPhone X was the most popular iPhone model for every single week during the quarter. But I know I don't have to do a thing and probably in a couple of years, we'll own 6 percent without laying out another dollar.

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