Apple Inc’s stock hit an all-time high on Friday after the American business magnate; the most looked after investor, and Berkshire Hathaway chief executive officer Warren Buffett revealed that it had bought 75 million more shares of the iPhone maker in the first three months of the year. A representative of the billionaire investor confirmed Buffett’s increased stake.
This pushed Apple’s shares up as much as 3.8 percent to $183.65. It was the stock’s second significant gain this week after the Cupertino-based firm surprised Wall Street on Tuesday with resilient iPhone sales and quarterly results that topped expectations (even after many doubts raised over the success of the latest iPhone). The rally began earlier this week after Apple Inc announced a new $100bn share buyback plan, posted upbeat earnings and issued a confident outlook for iPhone sales in spite of recent concerns of a slowdown.
Berkshire Hathaway’s initial investment in Apple was small, suggesting one of Buffett’s investment deputies made it. However, with the latest stake purchase, it has grown to a massive 240.3 million shares worth $42.5 billion. Berkshire has gone more than two years since a significant acquisition. Buffett said in his annual letter that he wants one or more “huge” non-insurance acquisitions to help him reduce Berkshire’s $116 billion in cash and equivalents.
In an Interview with CNBC, Warren said:
It is an unbelievable company. If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States.
Alphabet, Cisco Systems and other technology companies rose. Retailers, banks and household goods-makers also rallied. Investors also cheered strong first-quarter results from companies such as Shake Shack and Activision Blizzard.
While Apple’s stock has performed well, any individual stock can over- or under-perform and past returns do not predict future results. Some analysts had concerns about a possible slowdown in iPhone sales after the company’s quarterly earnings report Tuesday showed Apple sold fewer iPhones than expected. Anyways it managed to be the highest sold smartphone amongst its competitors.