Apple stock hits new highs after ringing endorsement from Warren Buffett

Alicia Cross
May 9, 2018

According to Buffett, Apple is an "unbelievable company".

Buffett: "The nice thing about buying Apple is that I don't care whether anyone mentions Apple again". And we really like their management, their way of thinking and their way of acting, "he said with a smile".

If it crosses the trillion-dollar threshold, it will become the first United States company to do so - a title that fellow tech giants Amazon, Google and Microsoft have also been vying to achieve.

There were many rumors that the US-based company, Apple's favorite iPhone X was a complete disappointment and that the company was struggling to regain its competitive edge.

Buffett: "When you buy a farm, you look at the crop every year and what prices are and decide whether it was a satisfactory investment". If you buy a bond that's going to pay you 4% a year, you're not going to get any surprises, it's going to pay you 4% a year.

Pakistan coal mine blast kills 23 near Quetta
Officials said Sunday the death toll from twin explosions in neighboring mines near Quetta had reached 23. However, they faced difficulties as the mouth of the mine had been blocked by a boulder after the blast.

Bayern's Heynckes calls on referee to be strong versus Real
The under pressure pair were outstanding for their Champions League success against Bayern Munich . "They should be anxious ", Gerrard said of Zinedine Zidane's defending champions.

Waymo releases dash cam video of autonomous vehicle involved in crash
The Honda city ends up hitting the Google's autonomous vehicle and both vehicles look severely damaged in the images. As the Honda swerved, it entered the westbound lanes of Chandler Boulevard and ended up hitting the Waymo minivan.

After offering its first stock buyback in August 2012, Apple has bought back $200 billion worth of stock, and just announced last week that it would repurchase an additional $100 billion in its shares.

"I love the idea of having our 5% grow to 6 or 7% without us laying out a dime", Buffett said.

"I think we've been a little too restrained", Munger told CNBC from Omaha, Neb. "So we very much approve of them repurchasing shares".

Buffett says Wells Fargo clearly had the wrong incentives in place when bank employees opened as many as 2 million accounts without getting customers' permission to meet aggressive sales targets. "There's no reason at all for me to encourage people to buy Apple". In March, its shares briefly crossed the $925 billion mark, but recent market volatility and concerns over the company's iPhone business sent Apple's stock lower. "The top tech companies do have a very strong profit position right now but Apple has the most of all". "Mr. Buffett does not see current valuation compelling for large share buybacks", he wrote, adding that "Berkshire could deploy cash for more equity investments".

The race for who makes it to the $1 trillion cap first is warming up, and at the moment, Apple has a lot going for it.

Other reports by Free-Prsite

Discuss This Article

FOLLOW OUR NEWSPAPER