While Warren Buffett maybe upset about not investing and purchasing stocks from Google as well as Amazon, he certainly makes his interest in Apple clear as its 250 million stockholder, Berkshire Hathaway.
Berkshire Hathaway’s substantial purchasing of stock of 250 million from Apple has left it as it’s largest holding. Speaking at the annual Berkshire Hathaway meeting on Saturday, Warren Buffett replied to many questions about the massive purchases from Apple, saying “I didn’t go into Apple because it was a tech stock in the least,” and “I went into Apple because I came to certain conclusions about both the intelligence with the capital they deploy, but more important the value of their ecosystem and how permanent that ecosystem could be.”
Since the initial disclosure almost 2 years ago, Apple’s stock has almost doubled, as well as breaking records and reaching a new level on Monday, making it a massive success for Berkshire Hathaway.
Buybacks and More
Among various reasons of the utmost interest in Apple is the massive cash reserve to make company stock buybacks. As of 2012, Apple repurchased 200 billion US dollars worth of its own stock with announcements of another 100 billion US dollars.
Buffett commented, saying: “I think it’s extremely hard to find acquisitions that would be accretive to Apple that would be in the $50 billion, or $100 billion or $200 billion range,” and “I’m delighted to see them repurchasing shares.”
Apples huge stock buybacks could possibly mean an even bigger profit for Berkshire Hathaway and an even bigger ownership, seeing as how they own around 5 percent of the shares. Buffet spoke more of wanting to own a larger percentage, saying “I love the idea of having our 5% grow to 6 or 7% without us laying out a dime,”
As for Apple, Berkshire Hathaway’s investments aren’t going anywhere as it only seems to go uphill from here.