Warren Buffett is betting big on Apple

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Berkshire Hathaway's investment in Apple could send the price back up.
Photo: Ste Smith/Cult of Mac

Some of the world’s biggest investors have ditched their Apple shares lately, but where others see doom and gloom Warren Buffett sees an opportunity to make some serious money. 

Warren Buffet’s legendary investment firm Berkshire Hathaway has taken a large position in Apple stock, scooping up 9.81 million shares, worth about $1.07 billion.

The firm’s investment in Apple has gotten off to a rocky start. Documents filed with the SEC reveal the firm purchased its 9.81 million shares before March 31st. The stock has suffered its longest streak of losses since in over a decade after the company announced its disappointing Q2 2016 earnings.

Buffet usually stays away from technology stocks, prefering to invest in industrial businesses and financial companies, however his firm made a $10 billion investment in IBM in 2011. The firm likely saw a good buying opportunity in Apple. The stock has been trading down about 14% so far in 2016, but some investors like Carl Icahn still claim the stock is undervalued.

Berkshire Hathaway is looking to make other high tech investments too. The firm is backing a group to buy Yahoo’s assets with Quicken Loans founder Dan Gilbert. Since news broke of Berkshire’s investment Apple’s stock price has shot up 3.30% to $93.84 in early trading.