“Apple hit a new all-time high Friday, briefly surpassing its previous high of $183.50 — pushed up by news that Warren Buffett’s Berkshire Hathaway bought 75 million shares in the first quarter,” Sara Salinas reports for CNBC. “The stock is now roughly $20 per share short of a $1 trillion market cap.”
“Buffett is in Omaha, Nebraska, for the annual Berkshire Hathaway shareholders meeting, and he hasn’t been shy about his bull case for Apple,” Salinas reports. “The legendary investor revealed his company’s massive stake in Apple and said obsessing over iPhone X sales in the near term “totally misses the point” on the stock. Buffett’s comments drove Apple ahead of the rest of the tech sector and overall market.”
“‘I don’t think he’s done. I think the numbers of the investment in Apple are going to go higher and maybe even significantly higher,’ said David Rolfe, CIO of Wedgewood Partners, which counts Berkshire and Apple as its two largest holdings,” Salinas reports. “Apple CEO Tim Cook said the company is ‘thrilled’ to have Buffett and Berkshire as a major investor. ‘On a personal level, I’ve always greatly admired Warren and have always been grateful for his insight and advice,’ Cook said in a statement.”
Read more in the full article here.
MacDailyNews Take: Interns, order that second keg!
SEE ALSO:
Warren Buffett’s Berkshire Hathaway bought 75 million more Apple shares during the first quarter – May 4, 2018
Why was iPhone X so successful at $999 despite a slew of fake news? – May 2, 2018
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Apple’s iPhone X isn’t selling well – or is it? – April 21, 2018
Apple’s iPhone X to be discontinued this year, analyst claims – April 20, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Bernstein: Ams AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Do iPhone X sales spell trouble for Apple? – January 30, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
I love how it’s attributed to Warren Buffett buying shares rather than the success of the iPhone X. I’ve been watching the business news since this morning and it’s all about Buffett, Buffett, Buffett. No acknowledgement of the constant false reporting that created an atmosphere of doom and gloom around Apple for months.
There was some criticism of the rumor-induced “panic”, but it seems the self-flagellation with wet noodles is quickly coming to an end. The hand-wringing has already begun with regard to the competitiveness of Apple’s services segment.
To the Moon Apple, to the Moon!!!
Well Well WELL. iGuess AAPL is not doomed after all.
CHEERS!
That should read: “Apple surges to all-time high on poor sales of soon-to-be-discontinued iPhone X”
Yes, $183.50, very nice, BUT wouldn’t $190 be better? How about $200? See, as long as there are numbers HIGHER than Apple’s current numbers, that just shows they’re not doing as well as they COULD be doing. Pipeline Timmy has got to go… I guess.
Apple’s CFO, Luca Maestri, stated during the con-call, a significant reason for buy-backs, vs higher dividend, was he thought the shares were undervalued. Obviously that means, resources devoted towards share purchases were to bring greater impact.
The benefits of buy-backs are often questioned, but the CEO’s definitive “undervalued” statement, coupled with the world market embracing Apple’s most expensive phone, gives the “insiders” undervalued declaration a powerful/hopeful combo. Of course giving credence to an insiders’ voice can be foolish, but when Warren seems to agree, it might have legs.
I would much rather have a buy-back because it’s an avoided dividend meaning fewer fish in the dividend pool = more dividend share for me. Plus I don’t have to pay any taxes on a buy-back until I sell my shares.
After the call it’s clear that Apple watch rules the category so I shorted FIT the day of earnings results and made nice profit. After hearing Apple Music domination I shorted P on earnings, too. Ooops. Easy come easy go. P should have gone down – fewer listener hours is the key metric, not number of users.
I understand your logic re: divi, vs BB. I’ve also read of people very critical of BB’s b/c company leadership prefers them because they are huge benefactors.
Me too..
But the only catch with buyback ( returns to shareholders) is if PE starts trending lower.. all the gains go poof!
But i have confidence that the PE is sustainable and may even move higher… based on the market having more confidence in Apples more diversified revenue streams now.
And remember Tim’s comment as well:
“ We Remain VERY Bulish towards our future”
He did not have to say that…
Let alone reiterate it couple times;)
I think you’re right. Since Apple is the only company going up, the analysts will always criticise it for not going up enough.
Seriously, where would the fun be if they did this to LG or HTC?
I hope all the shorts got a good flogging! Long APPL!
👏 👏 👏
200+ by Christmas..
Just the buy back alone should take us there..
Add in Some earnings growth and better PE ( hopefully due to market being more confident of Apple’s more diversified revenue streams )
200++ in one year …
Yee haaa
( please Apple .. no slip-ups 🙏🙏🙏)
Oh, how everyone celebrates – don’t worry, they will be down again before the next quarterly results, so you will have another buy opportunity then!