Warren Buffet Believes in Apple Stock – Purchases an Astounding 9.81 Million Shares
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Most of the recent news surrounding Apple has been “doom and gloom.” The company made headlines earlier this month when rival smartphone manufacturer Samsung overtook Apple as the number one smartphone vendor in the US. Late last week, Apple was in the press again when it lost the title of most valuable company in the world as Google’s parent company, Alphabet, posted a market cap higher than Apple. With iPhone sales declining, and with the company recently posting their first quarterly revenue decline in almost 13 years, many people don’t like the forecast for the future of Apple. However, famed billionaire Warren Buffet isn’t one of those people.
It was recently reported that Warren Buffet, one of the world’s wealthiest people, has purchased 9.81 million shares in Apple during the first quarter of this year – a $1.07 billion investment. The stock had dropped to a two-year low earlier this month, dipping below $90 for the first time since May of 2014. When news surfaced of Buffet’s purchase, other investors followed suit, and the stock rose 3.7%, and is now trading upwards of $94.
Buffet, who doesn’t typically invest in technology stocks, is typically known as a value investor – one who tends to buy stocks that appear to be priced lower than their intrinsic value. He is the CEO of famed holdings company Berkshire Hathaway, which wholly owns GEICO, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, and owns a percentage of Kraft Heinz, Coca-Cola, American Express, and Wells Fargo, and many other well-known companies and brands worldwide. His method has obviously been quite successful – his net worth is estimated to be around $66 billion, and he is consistently ranked as one of the world’s wealthiest men, as well as one of the world’s most influential people.
Although many people aren’t optimistic at the moment concerning Apple’s future, Buffet obviously sees value in the company’s stock. Perhaps Buffet, known as the “Oracle of Omaha” knows something that the rest of us don’t – the man isn’t known for making bad investments. Maybe the future for Apple isn’t so grim, after all.
What do you think Apple still has a long prosperous future? Let us know in the comments below.