Here’s why Warren Buffett added to his Apple position, stock going to $150

“It was revealed yesterday in an SEC filing that Warren Buffett’s Berkshire Hathaway purchased an additional 5.4 million shares of Apple common stock in the 2nd quarter,” Giovanni DiMauro writes for Seeking Alpha. “Yesterday’s revelation of additional share purchases brings his total share count to 15.2 million.”

“The Warren Buffett Motto: ‘Be fearful when others are greedy and greedy when others are fearful,'” DiMauro writes. “Doesn’t that pretty much sum it all up, folks? Just three short months ago, Apple was plunging to the $89 level. The negative media press was talking non-stop about the demise of Apple, slower iPhone sales, problems in China, etc. In fact, Apple was taking a nice percentage off the Dow and signaling to many the beginning of a possible new market downturn. While some were panicking, Warren Buffett was taking a nice position in Apple.”

“We all know that he likes to buy and hold forever, not caring about the day-to-day movements in the market,” DiMauro writes. “Investors would be wise to buy Apple on weakness and hold for a nice run to $150 or higher.”

Read more in the full article here.

MacDailyNews Note: Apple’s all-time high was set during intraday trading on February 24, 2015 at $133.60 per share.

SEE ALSO:
Warren Buffett’s Berkshire Hathaway boosts Apple stake by 5.42 million shares – August 16, 2016
Apple: Is a surprise coming? – August 16, 2016

8 Comments

  1. Warren Buffett has probably never bought a share of Apple ever, it’s his Berkshire-Hathaway portfolio managers, Todd Combs and Ted Weschler, who are investing in Apple.

  2. Oh MDN you are making me drool posting that up. I can’t believe that we might see $130 a share say in the next year and one of those “Apple stock hits new high” headline I’m sure you are keeping ready.

    When Tim Cook took over as CEO I was realistic, looking at being happy if Apple went to 10-50 dollars a share but he’s really kept the price relatively up there, another testimony to his leadership, because believe me there are a lot of other wannabe CEO’s that would have driven the stock to 10-50 dollars a share.

  3. With all the years of Buffet being asked about AAPL shares, and his refusal to get into Apple and tech in general, I guarantee Buffet had knowledge of Berkshire Hathaway purchasing any AAPL shares. Apple now fits a great category of still possibly being a growth stock and also a long term dividend stock…a nice problem to have and a nice place to be in where few can live.

    1. If Warren Buffet is getting in on Apple then it isn’t because it is a tech stock in the old sense of the term. Apple Inc signalled this when they dropped the Computer moniker from their name. It’s an energy company, a services company, a consumer electronics company, a B&M retailer with one of the highest profit per sq. ft. Yup, it’s no longer only a computer company. Get on its stock while it’s cheap. And enjoy for the long haul.

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