One of Apple's richest and oldest fans finally switches from a flip phone to an iPhone
Considered one of the world's greatest investors, Warren Buffet traditionally stayed away from tech stocks until he started to amass a position in Apple years ago that now amounts to a 5.5% ownership stake in the company. As CNBC reports, even though Buffet considers Apple to be "probably the best business I know in the world," the 89-year old stuck with a $20 flip phone for years. But the so-called "Oracle of Omaha" has finally replaced his 2009 Samsung SCH-U320 with one of the new iPhone 11 models.
Buffet told CNBC that "You’re looking at an 89-year-old guy who’s barely beginning to get with it," and admitted that he uses the handset to make and take phone calls only. He does, however, use an iPad to do some of his research on stocks and the overall market and to check on the latest stock prices. Not that Buffet constantly looks to see where his stocks are trading at; a notorious long-term investor, the Berkshire Hathaway CEO typically buys a stock and holds it forever.
Back in 2018, Apple CEO Tim Cook told Buffet that he would fly up to Omaha to help Buffet set up his iPhone whenever he decided to switch. Not everyone can get their iPhone set up by the CEO of the company, but it helps to own 245 million shares of Apple worth $72 billion according to filings made by Buffet's holding company at the end of last year. Cook even sent Buffet a new iPhone, one of several that he has received. It must be nice to be worth $90.3 billion but still have people send you free iPhone models.
Buffet's holdings took a big hit today when the stock market dropped sharply due to the spread of the coronavirus disease. With Apple's stock closing under $300 on Monday for the first time since January 7th, the decline of $14.87 a share dropped the value of Berkshire Hathaway's Apple shares by $3.42 billion. But for one of the world's richest men, it is no cause for alarm.