‘Warren Buffett effect’ causes Apple share prices to rebound

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Apple raked in the cash last quarter.
Legendary investor Warren Buffett is sending AAPL skyward.
Photo: Jim Merithew/Cult of Mac

He’s previously admitting to not really “getting” Apple, but legendary investor Warren Buffett’s recent investment in AAPL seems to have convinced shareholders to have a bit more faith in the Little Cupertino Company That Could.

With shares having plummeted 13.4 percent between the end of April and mid-May, Warren Buffett’s newly-disclosed $1 billion+ dollar stake in Apple has sent the shares soaring back toward the $100 mark — coming in at $99.98 at time of writing.

Buffet’s famous investment firm Berkshire Hathaway purchased its 9.81 million shares just before March 31st, which was some unfortunate timing since it came just around the point that Apple announced its disappointing Q2 2016 earnings. Fortunately things have since rebounded — with some claiming it’s the “Warren Buffett effect” in action, which instills confidence in investors.

Last month, fellow fat cat investor Carl Icahn announced that he was getting rid of his AAPL shares — despite calling them undervalued and having made over $3.4 billion investing in the company — because of his fears concerning uncertainty in China.

Source: Fortune