Warren Buffett is betting bigger than ever on AAPL

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money
Buffett has made some serious money betting on Apple.
Photo: Ste Smith/Cult of Mac

Legendary investor Warren Buffet tends to stay away from technology stocks, but he can’t be too upset about his company’s decision to invest in AAPL stock.

At least, that would be the assumption based on the fact that his Berkshire Hathaway investment company announced this week that it’s increasing its stake in AAPL by a massive 55 percent.

In late June this year, Berkshire owned 15.23 million Apple shares, with a value of around $1.46 billion. This was up significantly from the 9.81 million shares the company held on March 31.

The news of Buffett investing in AAPL is positive for Apple in terms of what it suggests about the company’s future viability in the eyes of investors. Earlier this year, activist investor Carl Icahn in April cashed out his entire Apple stake, claiming that he was worried about the impact that China could have on the company. This is despite the fact that he reportedly made over $3.4 billion investing in the company.

Buffett’s investment appears to counter those concerns — and with Apple’s better-than-expected recent third-quarter earnings and the “Warren Buffett effect” on share prices — it seems that things are looking on far firmer ground than they have in a while.

In his recent revealing interview with the Washington Post, Tim Cook said that: “I think for investors that are focused on the long term, if you look at how we’ve done in the past five years, our total shareholder return is over 100 percent. That’s a pretty good number. And I think most people that have been in the stock for that period of time are probably pretty happy.”

It sounds like Buffett is among them!

Source: Reuters

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