Warren Buffet reveals $1 billion position in Apple

Warren Buffet reveals $1 billion position in Apple
Famed value investor Warren Buffet filed form 13F with the SEC today, revealing that the so-called "Oracle of Omaha" purchased 9.81 million Apple shares during the first quarter of this year. The investment, which cost him $1.07 billion, is already off to a poor start because of the recent decline in the stock, which briefly traded under $90 the other day. The disclosure that Buffet had purchased shares of Apple has other investors following suit. This morning, Apple is up $2.87 at $93.39 for a 3.2% gain.

As a value investor, Buffet generally seeks stocks that based on his calculations, are trading for less than what the company is worth. His approach is markedly different than a trader like Carl Icahn. The latter recently sold his entire Apple position for a $2 billion profit after he became concerned that the Chinese government was making things difficult for Apple to do business in the country.

On April 26th, Apple's shares dropped under $100 immediately after the company announced that for its fiscal second quarter, iPhone sales dropped year-over-year for the first time in history. While we won't know until the current quarter ends next month, it is possible that Buffet is taking advantage of the decline to pick up additional shares in Apple.

Buffet isn't known to be a investor in technology. One of the richest men on the planet, he has made billions buying and taking long term positions in famous American brands like Coca-Cola and American Express.

source: WSJ

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42 Comments

1. kiko007

Posts: 7493; Member since: Feb 17, 2016

I could have sworn someone here said their stocks would hit under $50 dollars soon. Just goes to show how little some people understand about stock pricing I suppose.

7. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Soon doesn't mean today. All it takes is time. These investors only did so, because they heard buffet did. This small climb doesn't change their huge fall. Rich people investing money, isn't going to help sales if Apple doesn't do something with the products they have.

11. kiko007

Posts: 7493; Member since: Feb 17, 2016

Soon: in or after a short period of time. Apple's shares can't go below $50 USD for at least 4 years (except in the event of catastrophe). And this "huge fall" you speak of is of is nonsensical conjecture at its finest. You honestly have no clue how or why the market reacted the way it did or will. You are simply applying your own bias to investors, who have a different mindset than you do. Lastly rich people investing money is the life blood of a publicly traded company like Apple. Buffet's show of faith does more for Apple stick than you realize, and what's this about Apple's sales. You mean the 50 million phonees they moved last quarter? That's more than HTC and Sony combined BTW. I don't see you prowling those articles pouncing at the chance to see their downfall. Be honest, you have no semblance of understanding the market or its changes do you?

14. marorun

Posts: 5029; Member since: Mar 30, 2015

short period of time can mean so many thing. Humans where on this planet only for a short period of time compared to the planet age. Everything else you said kiko is useless.

20. kiko007

Posts: 7493; Member since: Feb 17, 2016

Your entire post was "useless". It was clear what he meant by soon, a few months or years, I simply refuted his uninformed opinion. Just because you don't agree with it, doesn't make it any less true.

27. tedkord

Posts: 17295; Member since: Jun 17, 2009

I'm not claiming anything about Apple's stock price, but your entire premise is flawed by your own definition. You stated soon meant a few months our years. It's been maybe a few weeks since he made his statement, so you can't judge it at all in this instance.

30. kiko007

Posts: 7493; Member since: Feb 17, 2016

Maybe so, but I'm not a time traveler. He sounded pretty confident it would happen "very" soon. For once I wish people would own it and simply say "Yeah, I was wrong." but I should know the internet isn't a place where that happens often I suppose. Where's the Doc when ya need him ;).

35. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

I claim if AAPL Apple does not fail $78.00 look upwards before down wards. This will not be soon, However if they continually slide quarter after quarter that may be possible

12. Unordinary unregistered

How are they failing? Despite lack of sales, the iPhone, Mac, and iPad still are outselling every other smartphone, laptop, and tablet currently. PA didn't post this because it contradicts their previous article. It was on every other tech site several days ago. Educate yourself.

16. marorun

Posts: 5029; Member since: Mar 30, 2015

Unordinary. I give it to you on the smartphone if its only 1 model on 1 ( usual tactic by apple lover to apologize about having less than 20% of worldwide market share ) Same for tablet. But laptop? Go back to your cave! http://www.rswebsols.com/reviews/laptop/top-10-best-selling-laptops-notebooks

43. k4ever

Posts: 240; Member since: Oct 08, 2014

Are we supposed to believe a story from Appleinsider? Really? We have seen the same bull $hit stories about Apple products "outperforming the market" for some time now, yet Apple's marketshare for these products continue to drop. You can't "outperform the market" and lose marketshare at the same time.

44. iushnt

Posts: 3085; Member since: Feb 06, 2013

Bro come on..Not appleinsider

36. QWERTYphone

Posts: 654; Member since: Sep 22, 2014

I'm disappointed in Buffet for investing in this evil company ran by a queen. He better pump, and dump, this chump company and it's stock.

2. ReticentHamster

Posts: 153; Member since: Jan 19, 2015

Wow, this is just becoming a proper rollercoaster, isn't it? I wonder how the people at Apple HQ feel about all of this; everything feels like it's in a state of flux at the moment. Depending on how the whole China thing goes, it seems like Apple may be sitting pretty again very soon. I guess only time will tell.

5. AlikMalix unregistered

I'm not holding Apple right now - too much volatility for my trading. But I also would love to see Apple drop under $50 only because they got so much potential to reinvent another product in our lives. I'm curious if they're really going into car business (not just some mapping or Uber apps). But I think Apple needs a hard hit before they move forward. Like that they'll be spending more into R&D (or rumored to). But as it sits, the entire smartphone industry is getting stale - nothing interesting coming from any manufacturer - just adding clutter mess into already gimmick-saturated devices. That tells me that everyone is out of ideas - and we need an original iPhone product Again for the industry to follow. Just my 2 cents.

9. TerryTerius unregistered

It isn't so much being out of ideas. There are tons of ideas floating around for devices that were never made. Hell, if you need proof of that just look at all of the left-field patents filed by Samsung and Apple itself. There are tons of them, unlike anything on the market. There are two problems though, one is ease of manufacturing, and the other is making something that people actually need. It is far from easy to create a whole new category of devices or machines that people have never seen before that wind up becoming integral to their very life. Or a feature set for that matter. Aside from that... That's making the assumption that the next kind of revolution will even be in consumer tech. Aside from the places where the tech industry is most heavily focused right now, primarily interconnected devices, breaking up the functionality of the smart phone, fitness assistants, robotics, autonomy and artificial intelligence, there are a whole other fields. The next major breakthrough may be in replacing human organs with artificial ones, or nano machines, or cybernetic implants, more effective solar power, better recycling, sustainable food growth and farming, drawing water from the atmosphere, carbon sequestration, so on and so forth. And who knows who or what company that will come from. In other words, I think it's a bit presumptuous to think that Apple or Google or Microsoft will have anything to do with the next wave of life-changing advancement.

13. AlikMalix unregistered

You're not wrong. But My topic was centered on our favorite tech companies: Apple, Google (android oems) and MS. Overall I think I'm loosing interest in the whole thing - I thought that if I loose interest in iOS - I can always try android, but I recently got my hands on a used note 4 for $100 - and, well, so much hype by all these fans - but in real world: "meh". Only one of my favorite games on android (RR3, the rest are Missing), changing themes leaves a lot of the UI unchanged and inconsistent, the only fonts that look right are the stock ones. Constantly turning off apps to keep phone from stuttering (same old problem I had usher I tried SGS4 years ago). The best of android productivity is google services and I have those on iOS. Maybe I hd higher hopes for android, I know I'm an iOS fan - but I wanted to quietly give android a real try, hold on back any of my critisism. Well the cat is out of the bag - android is not "the best platform in the world" as everyone keep chanting. Its different, it has its pros and cons, but not one bit better than iOS. My 5s on iOS 9 runs smoother, better, snappier than note 4 on lollipop - that's just the truth. I selected Note because I liked the pen, but after drawing with it and (I do like it) I still found myself wanting the Apple Pencil. S-pen is great for input, but pencil is just awesome for drawing (I'm gonna chuck that under "everyone has different preferences"). I know I sound biased and I'm gonna catch fire for above (ooh this guy said android ain't better than iOS - isheep, right?). But I really did have hopes that android will reignite my interest for something different - but it didn't. Android fans gave it too much hype. This is why I'm hoping for someone to break the mold again - either Apple, Google, or MS - I don't care - I'm ready to try something different - android failed at being that.

18. marorun

Posts: 5029; Member since: Mar 30, 2015

Alik dont use Samsung i fully agree with what you say and feel same way about Samsung device. use HTC , LG , Sony , Moto ect those are much better and smoother too.

26. TerryTerius unregistered

Everyone has their issues. The letters fell off my One M8 within three months of my buying it, and the headphone port would cause random skips when listening to music unless they had a rubber insulator to prevent contact. The camera was also decidedly average at best. That said, it was very smooth/fluid, I liked the UI and loved the way it looked and felt. I miss that device. My G3 had a dim screen and poor battery life, as well as an issue with occasional choppiness. But it was stuffed to the gills with features, and had a fairly good camera. And at the time, it looked like nothing else on the market. Never had anything from Sony or Moto, but they each have had problems that mostly didn't get sorted out until recently. Long story short is, nobody is perfect. Although right now, Samsung, Apple and HTC each have devices that aren't that far off.

33. AlikMalix unregistered

@mororun Will try that after Note 4 is sold.

31. TerryTerius unregistered

The thing is, this mostly comes down to personal opinion. I find iOS lacking in some areas, you find android lacking in some areas. There's nothing really wrong with knowing what you like and sticking to that. It just becomes a problem when you bash another system, and that is unnecessary. I don't remember you ever really doing that, but you do have a tendency to show your bias. That said, I don't hold it against you for liking iOS more. And yeah, we do need something new. But I honestly think that's going to come more in the form of artificial intelligence than simply better smart phones. Everyone is pretty much working towards making HER real.

17. marorun

Posts: 5029; Member since: Mar 30, 2015

Terry Google working on several of the thing you mentioned. so its would not be presumptuous to think google will do something life-changing in the future. Much less than apple or microsoft at least.

24. TerryTerius unregistered

It is, because literally no one knows the future. If you asked in 1990, no one would have predicted that Steve Jobs would have been the one to merge all those existing technologies together and popularize the modern smart phone. No one would have predicted Google or Facebook before they rose to prominence. That is what I'm saying. Assuming that the players right now will be the players of tomorrow is just that, an assumption. Doesn't really matter who's investing into what at the moment. Tesla and Uber are much of the same. Even if you recognize the need is there for a certain product, who knows which company will actually be that ones to succeed and bring it to market and who knows who will do it best. So yeah, we can assume that Google will have a role in the future, but we don't know that they will be a major force. See what I'm saying?

34. AlikMalix unregistered

Terry I always appreciate your input.

40. Podrick

Posts: 1284; Member since: Aug 19, 2015

He's one of the best commentators here. Unbiased and logical.

41. gadgeteer

Posts: 45; Member since: Sep 06, 2014

You make too much sense hence spoilig the fun. Stop being such a party pooper. Find a conservative blog or something. Please.

6. k4ever

Posts: 240; Member since: Oct 08, 2014

I think that Buffet should have let it slide well below $90 before buying. He probably would have got a better return once the stock started going back up based on the publicity. Either way, it's a good thing for Apple's investors but it is only putting a Band-Aid on a gaping wound. Apple needs to start putting premium parts in their devices again to match the premium prices. Apple needs to start actually innovating again instead of filling the airways with hype. Apple needs to actually test their software before releasing it or actually put more focus on software stability over software design (probably not going to happen with Apple). If Apple doesn't do this, their market share will continue to drop as will their sales. It's sad when a $200-400 Android phone is more technologically advanced then a $1000 iPhone.

10. kiko007

Posts: 7493; Member since: Feb 17, 2016

I agree with the position of Buffet waiting, but the iPhone is plenty advanced for what it does. Let me start by denouncing this "innovation" craze. 1) The average consumer sees innovation as nothing but a bother until proper implementation. Case and point: the LG G5 and the entire saga around it. 2) There isn't any innovation in the rest of the smartphone industry either. Upping resolution is not innovation, a curved screen is not innovation, making the camera better each iteration is not innovation, etc. If all of the other OEMs can get away with constant spec boosts, why is Apple any different? 3) How are these "innovative" features treating any Android OEM outside of Samsung? Not very well right? The point being, Apple is fine with where they are, and they should be. Now let's delve into the rest of your post, starting with this thought that because an Android has eight core, it'll out perform an iPhone . I thought the lot of you all learned last year how idiotic that was? Apple's duel core processors have a much larger dye size than your eight core throttle haven, and that's just part of the reason they perform better with less specs. Imagine if they decided to go the Android route where you need a V8 engine in your phone to get s**t done? iPhone 7x: 6gb RAM A12-OctaCore chip. That thing would destroy post gaming PCs in performance lol. Next software. Do you honestly think they don't test their software before releasing it publicly? So their software engineers are just chillin' in the office huh? Welp I haven't seen any of these issues reported....ever. The reason why more issues are being reported, is because of more users joining the ecosystem. And while taking software into account, how about we look at Google's issues with Android as well. Like the Lollipop memory leak, or the Wi-Fi bug that has been around since MM beta, or their inability to pinpoint stolen apps from their own store. Lastly, their lack of effort updating their username. It must be nice not getting any issues reported with only 7.5% of your users running your latest platform. Not too mention the pack of security updates for well over 60% of the entire Android population. Both platforms have major software issues, not just one. Finally, your $200-400 dollar Androids can do everything you want, so why in the hell would you ever buy an $800 Android phone? In Apple's ecosystem if you want the latest and greatest you buy the new iPhone because there is only one. However, it's not like you can't get every Android feature on a cheaper Android. Audio, waterproofing, fast charging, wireless charging, etc can be found in much cheaper phones than an S7. No wonder the average Android phone costs under $164 USD, the market is too saturated with them.

15. tedkord

Posts: 17295; Member since: Jun 17, 2009

I don't think you give enough credit for innovation. It's not just, "making the camera better," it's how you make it better that qualifies as innovation. The curved screens are most definitely innovation. Innovation doesn't have to be world changing to be called innovation.

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