Business
Buffett’s Letter to Break Months of Silence Amid Tumult in U.S.
February 25, 2021
January 30, 2022
The value of Berkshire Hathaway’s holdings in Apple increased $9.8 billion on Friday as Apple stock rose nearly 7% on a strong earnings report.
Apple reported December quarter earnings on Thursday, posting nearly $124 billion in sales and strong sales growth in every product line except for the iPad. Investors seemed particularly keen on CEO Tim Cook’s remarks that supply chain headaches are improving.
Apple issues regular dividends, which Buffett has said is attractive under his investing philosophy.
“I don’t think of Apple as a stock. I think of it as our third business,” Buffett commented in 2020, calling it “probably the best business I know in the world.”
Buffett has also made the argument that Apple’s iPhone ecosystem is “sticky” and encourages customers to regularly upgrade, making it a safer investment and more like a consumer company than a tech company.
The mutual admiration between the two business titans goes beyond investment, though. In 2019, Apple briefly published a game based on Buffett’s childhood that was presented at the Berkshire Hathaway shareholder meeting.
SOURCE: CNBC
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