Warren Buffett suggests Apple Inc to buyback more shares

Warren Buffett suggests Apple Inc to buyback more shares

Warren Buffett suggests Apple Inc to buyback more shares

"I didn't go into Apple because it was a tech stock in the least", Buffett explained at the Berkshire meeting.

"I clearly like Apple".

Apple, whose stock hit a new record high Monday, has been a major victor for Berkshire Hathaway: Apple's stock price has roughly doubled in the two years since Berkshire initially disclosed its stake.

Ahead of his annual Berkshire Hathaway shareholder meeting, Buffett spoke highly of his investment in Apple.

"And you get that and it will feed off itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings", Buffett said.

Apple is now just US$16 per share short of reaching the much-anticipated US$1t mark.

In its Q1 2018 report, Apple also announced a new $100 billion stock buyback programme.

Among various reasons of the utmost interest in Apple is the massive cash reserve to make company stock buybacks.

Buffett commented, saying: "I think it's extremely hard to find acquisitions that would be accretive to Apple that would be in the $50 billion, or $100 billion or $200 billion range", and "I'm delighted to see them repurchasing shares".

"The best companies in China are cheaper than the best companies in the United States", Charlie Munger, vice chairman at Berkshire Hathaway, said on CNBC's "Squawk Box".

"No money has been made from bitcoin where somebody pays somebody else to own the same thing" he said.

Months earlier, many grew increasingly concerned that Apple's top-of-the-line phone has been a dud among consumers, due to its hefty US$1,000 price tag. "We buy them to hold", Buffett told CNBC.

The legendary investor also threw shade on day traders, who he said totally miss the point of investing in a company like Apple.

"Apple's an wonderful company, and the multiple's not big", he added. "So we very much approve of them repurchasing shares". "Like I say, [Apple CEO] Tim Cook can do simple math and he can probably do very complicated math too", Buffett added.

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