May 16, 2016 Comments Off on Buffett’s Berkshire $1B Bet on Apple Views: 356 California, California News, West

Buffett’s Berkshire $1B Bet on Apple

Warren Buffett’s Berkshire Hathaway Inc. took a $1-billion stake in Apple Inc., disclosing it bought 9.8 million shares in the first quarter of 2016 in SEC filings. In April, Apple reported its first quarterly decline in revenue in 13 years, and iPhone experienced its first-ever sales decline.

The investment expands the Omaha, Neb.-based holding company’s technology sector commitment, a segment that except for a big stake in IBM, Buffett has eschewed. Buffett also says he’s offered to finance a bid for Internet company Yahoo Inc. in partnership with Dan Gilbert, chairman of Quicken Loans and owner of the NBA Cleveland Cavaliers.

Analysts say Apple stock is ” stunningly cheap,” the company has large cash reserves, and is not getting credit for research and development being completed behind the scenes that will eventually yield new products.

Read More at Reuters

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