Update | Iconic billionaire Warren Buffett’s Berkshire unveils over US$1 billion stake in Apple
Technology-shy investor plunks money down into struggling Apple, giving shares a lift
Warren Buffett’s Berkshire Hathaway revealed a more than US$1 billion stake in Apple , a rare foray into the technology sector that the billionaire has largely shunned, apart from a poorly performing investment in IBM.
Shares of Apple got a boost from the Berkshire imprimatur, rising 3.71 per cent to end Monday at US$93.88. Berkshire made its investment in the first quarter, before the iPhone maker in April reported its first quarterly revenue decline in 13 years.
The investment came despite the increasing view among investors that Apple may deserve a lower valuation because its heady growth days may be over, though Berkshire has long favoured companies with strong balance sheets and management.
In a regulatory filing detailing most of its stock holdings, Berkshire said it held 9.81 million Apple shares worth $1.07 billion as of March 31.
The value has since fallen into the low $900 million range. Berkshire’s largest technology bet has been Buffett’s $12 billion stake in International Business Machines Corp.