For Warren Buffett, Apple shares stock a desire come true

FILE PHOTO: Warren Buffett, CEO of Berkshire Hathaway Inc, plays bridge as part of the company's annual meeting weekend in Omaha, Nebraska, USA May 6, 201[ads1]8. REUTERS / Rick Wilking / File Photo

(Reuters) – Billions Warren Buffett has said he would love to see Apple Inc's share price decline so he could buy more. He gets his wish.

Apple's announcement on Wednesday about weak iPhone demand during the holiday quarter due to lower sales in China sent the shares down 7.5 percent in the after-trade. B-shares in Buffett's Berkshire Hathaway Inc traded down 2 percent in the same season on Wall Street.

Buffett, the folksy Nebraska investor who is known for buying railways, energy agencies, and classic US corporate markets than for his acoustic picking tech stocks, has regretted in recent years that the boat has lost its boat to buy US technology giant stocks. He admitted a previous investment in IBM Corp. was not one of his best.

However, Buffett has made Apple a focal point in its portfolio of other company's shares, and uses its own use of Cupertino, California-based company's products, and says at its annual general meeting in Omaha in May, May: "We would like to see Apple goes down in price, "so he could buy more for a bargain.

Buffett sees Apple more as a consumer store than a technical warehouse, reflecting iPhone's status as a must-have possession for so many people.

Including demand falls on Wednesday, Apple's stock market values ​​have tumbled to below $ 700 billion from over $ 1.1 billion in October. Although Apple has fallen behind Inc and Microsoft Corp. in value, it remains one of Wall Street's largest companies.

Stocks in Berkshire itself have remained good even when the broad market fell last year. Last year, Berkshire returned 2.8 percent, while S & P 500 fell 4.4 percent, including reinvested dividends.

But three billion dollars on the Berkshire's Apple shares in the evening trading on Wednesday could show in future reported earnings. These figures do not reflect any long-term gains on Berkshire's investments, and Buffett has encouraged investors to ignore the earnings statistics mandated by US GAAP.

Reporting of Trevor Hunnicutt; Further reporting by Jonathan Stempel; Editing by Leslie Adler

Our Standards: Thomson Reuters Trust Principles.

Source link

Back to top button