Buffett Buys Apple

Warren Buffett just announced that he took a $1 billion stake in Apple (AAPL). This is surprising because he’s not known as a tech investor.

Berkshire held 9.81 million Apple shares as of March 31, according to a regulatory filing Monday from the billionaire’s Omaha, Nebraska-based company. The holding was valued at $1.07 billion at the end of the first quarter.

Apple is pivoting toward services and exploring new technologies such as self-driving cars to reduce reliance on the iPhone. Sales of the product dropped in the first quarter of this year, ending more than a decade of uninterrupted growth.

While Buffett has typically shunned technology investments, his deputies Todd Combs and Ted Weschler have been building their own portfolios in recent years. Their holdings are typically $1 billion or less per company, while Buffett makes larger wagers.

Apple is going for about 11 times the estimate for this fiscal year’s earnings. The dividend yield is about 2.5%. Buffett’s stake is indicated to be up nicely today on news of…itself.

Posted by on May 16th, 2016 at 8:48 am


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