Obsessing over iPhone X sales misses the point on Apple stock

Obsessing over iPhone X sales misses the point on Apple stock

Billionaire investor Warren Buffett mentioned long-term traders of Apple‘s stock should not obsess with near-term iPhone sales.

Berkshire Hathaway chairman and CEO mentioned in a “Squawk Box” interview that aired Friday. “It’s like worrying about the number of BlackBerrys 10 years ago.”

Buffett revealed that Berkshire purchased an astounding 75 million shares of Apple throughout the first quarter. That provides to the 165.three million shares Berkshire already owned at the finish of 2017.

Apple has “a wide, wide gap. I mean it’s an amazing business,” Buffett informed CNBC’s Becky Quick. “You can put all of their products on a dining room table.”

“Nobody buys a farm based on whether they think it’s going to rain next year,” he added. “They buy it because they think it’s a good investment over 10 or 20 years.”

Buffett spoke to CNBC on Thursday night from Omaha, Nebraska, the place tens of hundreds of Berkshire shareholders had been gathering for Saturday’s annual assembly.

Berkshire first made an funding in Apple in 2016 after an individual at the agency purchased about 10 million shares. Buffett then checked out the stock and bought significantly extra, the billionaire recalled in August to CNBC.

Apple reported quarterly earnings this week that beat expectations however bought fewer iPhones than anticipated. Still, the variety of iPhones bought appeared to calm traders a few potential slowdown in sales and hypothesis that Apple is likely to be seeking to wind down the iPhone X.

The tech big late Tuesday additionally elevated its quarterly dividend by 16 p.c and introduced a $100 billion buyback program.

In his CNBC interview, Buffett additionally mentioned he believes the economy is growing faster than 2 percent. “The last seven or eight years have averaged 2 percent roughly,” he identified. “It’s stronger than that right now.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *