Mega-investor Warren Buffett says that Apple’s most recent earnings confirm “the reason [my firms owns] $50 billion-plus of Apple.”
Speaking on CNBC, the Berkshire Hathaway investor said that, “I was pleased with what they reported.”
It’s no mystery why. Approaching $1 trillion valuation once more, Apple stock is up more than 32% this year. At the end of 2018, Buffett’s firm owned more than $40 billion of the company. Since then, it seems that it may have racked up even bigger AAPL holdings.
The Warren Buffett effect
Warren Buffett’s Apple fandom is even more significant since he historically steered clear of technology stocks. However, he thankfully made an exception in this case. That hasn’t just benefitted Buffett, but also Apple shareholders in general.
By holding on to AAPL even when it’s had setbacks, the stock has experienced the “Warren Buffett effect.” This has enhanced stability by convincing other shareholders to hang around when they’ve gotten jumpy.
Buffett is the ideal investor for Apple. Publicly, he sings the company’s praises at nearly every turn. Behind the scenes, he’s far less of an activist investor than the likes of Carl Icahn. Icahn made over $3.4 billion investing in the company a few years back. Unlike Icahn, Buffett has never tried to push Apple to make changes.
Buffett also revealed that he has bought some Amazon stock. As the second company to hit $1 trillion last year, that sounds an equally shrewd move.