Warren Buffet dumps IBM, buys 75 mn more Apple shares
05 May 2018
Billionaire investor Warren Buffett’s Berkshire Hathaway bought an additional 75 million shares in Apple in the first quarter of 2018, taking its stake in the company to more than 240 million shares worth more than $44 billion.
The announcement saw Apple shares soar to an all-time high of $184.25 on Friday and closed at $183.83. Its market capitalisation topped the $900 billion mark. Apple now accounts for a quarter of Berkshire Hathaway’s assets and is the biggest holding for it.“It is an unbelievable company,” declared Buffett. “If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States,” he told CNBC.
Buffet had earlier sold its entire stake in IBM and had used the funds to buy more Apple shares.
Apple CEO Tim Cook told CNBC that he was thrilled to see Warren and Berkshire as major investors in the company. “On a personal level, I've always greatly admired Warren and have always been grateful for his insight and advice,” added Cook.
Shares of the American giant had been under pressure with fears of declining sales of iPhones and of its scaling down production. However, Apple surprised the markets when it came out with results indicating a spurt in iPhone sales.