The Oracle of Omaha is loving him some Apple Inc. (NASDAQ:AAPL) these days.
As much of Wall Street sat around doubting that Apple could slow its negative iPhone sales momentum, Warren Buffett was busy snapping up Apple shares at a torrid pace. CNBC has more details:
In the first quarter, Buffett’s Berkshire Hathaway bought an astounding 75 million shares of Apple. That adds to the 165.3 million shares Berkshire already owned at the end of 2017.
“It is an unbelievable company,” Buffett says. “If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States.”
Based on a theoretical average price paid of $175, that would equate to around a $13 billion additional investment.
Buffett disclosed the massive purchases this week ahead of Berkshire Hathaway’s annual shareholders meeting. 40,000 Berkshire investors are expected to descend upon Omaha for the yearly event, and the company will — in typical fashion — release its latest quarterly earnings report on Saturday. In that report will be Berkshire’s ten largest holdings, so investors will get a good sense of how the company’s investment strategy might be shifting.
Apple Inc. shares rose $0.85 (+0.48%) in premarket trading Friday. Year-to-date, AAPL has gained 4.95%, versus a -1.19% rise in the benchmark S&P 500 index during the same period.