According to recent filings with the U.S. Securities and Exchange Commission, Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) is aggressively buying up shares in Apple Inc. (NASDAQ:APPL).
According to the company’s 13F Form, which publicly discloses its portfolio as of June 30, Berkshire Hathaway increased its holdings in the tech giant from 9.8 million shares at the end of March to 15.2 million shares. That’s an additional investment worth more than $400 million on top of one worth about $1 billion.
What exactly does the world’s most legendary investor like about Apple? Buffett usually keeps his opinions close to his chest, and Apple is no exception. The Oracle of Omaha has given investors few hints about the position.
In fact, the stake in the company might even be a choice of one of his top lieutenants, Ted Weschler and Todd Combs, who each manage about $9 billion of Berkshire’s $128-billion stock portfolio.
There are a number of things to like about Apple shares. Even after increasing some 15% since the beginning of July, the company’s P/E ratio is still only 12.7, a very reasonable number in today’s market. It has one of the world’s most popular brands, with millions of loyal customers that wouldn’t dream of buying a competing phone, tablet, or laptop.
Apple also has interesting growth projects. New versions of the iPhone and Macbook Pro laptops are coming out in the upcoming weeks. Longer-term projects include a virtual reality headset and the much-anticipated Apple Car.
