This week, shares of technology giant Apple Inc. (NASDAQ:AAPL) climbed sharply following comments from Warren Buffett that his company, Berkshire Hathaway Inc. (NYSE:BRK.A) has added to his position in America's largest firm, making Apple his largest holding overall.
The Oracle of Omaha appears to be placing a significant number of his eggs in this basket, a move which has surprised some who thought Mr. Buffett would never wade into these waters, but came as no surprise to others who see what Buffett does - a wide moat, loyal customer base, and pricing power which is largely unmatched in its field.
Apple has been a top pick of mine for some time now, and remains incredibly cheap despite the large run up in the company's stock price in recent years. While the company still has a ways to go to break through the psychological barrier of a $1-trillion market capitalization, the reality is that Apple is less than $100 billion away from breaching this mark, and is approaching yet another all-time high following Buffett's comments.
While the company has received some bad press of late relating to lower-than-expected sales for the company's iPhone product line, long-term investors such as Buffett have largely eschewed these concerns in favor of looking at the bigger long-term picture. While some iPhone releases will be wildly successful and others perhaps less so, the reality that Apple will continue to churn out cash for decades to come is enough to entice Buffett to continue to invest. Who's to disagree with one of the most iconic investors of all time?
Invest wisely, my friends.
