Warren Buffet And Berkshire Hathaway Announce $1 Billion Stake In Apple As Market Momentum Continues
Apple's declining revenues and share prices have started to make their impact quite early on, as earlier this month we saw vocal investor Carl Icahn dump his billion dollar stake in the company. Cupertino underwent its first decline in growth this year since 2003, causing some people to worry about the company's short term future. Nevertheless, Apple's got a couple of strong fronts to make a comeback, with China being the critical puzzle in the company's overall fate for the next couple of years.
Berkshire Hathaway Announces $1 Billion Stake In Apple As Buffet Increases Tech Presence
When it comes to investments, Warren Buffet clearly knows what he's doing. The famed, 85 year old investor has made billions off of successful investments in companies, with his interest in company's having become synonymous with stability across future operations. Despite the fact that Apple's seen remarkable growth over the past 10 years or so, Buffet and his conglomerate Berkshire Hathaway have kept away from Apple stock.
Interestingly still, as Apple's stock price declines after last quarter's earnings call, Buffet and Hathaway have finally decided to take a position in the company. Momentum following earnings announcement should after all be disregarded when making stock investment decisions and as Apple prices fell the last quarter, Berkshire Hathaway saw a good time to get Apple stock cheap.
The firm reports owning a $1.07 Billion worth of 9.81 million Apple shares at the end of this March, according to its 12F. Since that time, this position has already declined as the market continues to reach to Apple's latest earnings call. Cupertino's continuing reliance on the iPhone lineup for profits has finally caught up with it, as Apple continues to look towards markets abroad to fill the gap. Apple's been particularly active in China and according to Tim Cook himself the company's now started to look towards services to fill the gap left by the iPhone.
For Warren Buffet, after the investor's reported backing of Yahoo earlier, Buffet has finally started to make some moves in the tech world. He's often described Apple as being a highly risky investment but as services, smartphones and the internet take a more permanent position globally, tech certainly won't be as risky as before. All eyes are now on WWDC and Apple's event in September when the company's expected to launch the iPhone 7 and the iPhone 7 Plus. Thoughts? Let us know what you think in the comments section below and stay tuned for the latest.
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