“In the days leading up to Berkshire Hathaway’s annual meeting in early May 2018, Warren Buffett announced that Berkshire had purchased about 75 million additional shares of Apple,” Matthew Frankel writes for The Motley Fool. “This is in addition to Berkshire’s already-massive stake, and it results in the company owning more than 240 million shares of the iPhone maker — about 5% of the total. As of this writing, Apple trades for about $187 per share, which makes Berkshire’s Apple investment worth roughly $45 billion.”

“While Apple is now Berkshire’s largest stock investment by far, recent comments by Buffett and his right-hand man, Charlie Munger, indicate that Berkshire could add even more Apple stock to its portfolio,” Frankel writes. “‘We bought about five percent of the company. I’d love to own 100 percent of it,’ Buffett said. Charlie Munger, Berkshire’s vice chairman and Buffett’s longtime business partner, echoed Buffett’s viewpoint. ‘I think we’ve been a little too restrained,’ Munger said to CNBC. ‘I wish we owned more of it.'”

“At the end of the first quarter, Berkshire had about $108 billion in cash and equivalents on its balance sheet, down from about $116 billion at the end of 2017, mainly as a result of the Apple stock purchases,” Frankel writes. “Buffett recently told CNBC that he’d rather have about $30 billion in cash, so this leaves nearly $80 billion burning a hole in Berkshire’s pocket. I wouldn’t be at all surprised to see Buffett use a significant portion of this to accumulate even more Apple stock.”

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MacDailyNews Take: Support.

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