Many financial pundits thought Apple would be affected by declining smartphone sales and would cut iPhone X production, but it turns out that billionaire investor Warren Buffet wasn’t one of them.
According to CNBC, he bought an eye-watering 75 million shares in the company during the first quarter of 2018. That’s on top of the 120 million additional shares he acquired last year.
In an interview with the broadcaster, he called Apple an “unbelievable company”. Buffet said: “I think it earns almost twice as much as the second most profitable company in the United States.”
There’s no denying the fact that Apple is still leading the tech world, having sold 52.2 million iPhones and achieved profit of $13.8 billion at the start of the year.
The Cupertino-based tech firm announced these numbers on Tuesday, as part of its first-quarter financial results. Overall, the company outperformed predictions made by Wall Street analysts.
Despite the fact that most experts speculated that Apple would release disappointing first-quarter results, Buffet wasn’t put off from buying more shares in the company.
He also played down the idea of analysts focusing solely on near-term iPhone shipments. Buffet’s view is that Apple is a steady, long-term investment – regardless of what happens to its smartphones.
“The idea that you’re going to spend loads of time trying to guess how many iPhone X … are going to be sold in a 3 month period totally misses the point. It’s like worrying about the number of BlackBerrys 10 years ago,” he said.
“Nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 or 20 years.”