Buffett not planning to boost American Airlines stake over 10 percent
- Author: Zachary Reyes Feb 27, 2017,
Feb 27, 2017, 22:49
Buffett has always been bullish on prospects for businesses in the United States and few have benefited more than he from the nation's economic prosperity, Bloomberg said.
The famous investor says he's investing heavily in Apple, believing that once consumers begin using the company's varied products they aren't likely to stop.
Apple wasn't the only investment evolution for Buffett, who bought more than $9 billion of airline stocks after years of advising investors to steer clear of the industry, citing its significant capital requirements and poor returns. He also offered a rebuke to Donald Trump, saying immigrants are what has made America great.
He announced that Berkshire now owns some 133 million shares in Apple after buying yet more of the company's stock this year. It also makes Apple one of Buffett's company's largest holdings, second only to Coca-Cola.
Earlier this month, Berkshire reported that it had doubled its stake in Fort Worth-based American to 8.79 percent and acquired a $2 billion investment in Dallas-based Southwest, giving it a 7 percent stake in that airlines.
His aggressive buying spree at Apple caught many off guard.
The Oracle of Omaha thinks stocks are cheap relative to interest rates, and that Apple is cheap relative to everything. Buffett said Jain has created "tens of billions of dollars of value" since joining Berkshire in 1986. The chairman and CEO of Berkshire Hathaway has readily admitted that he does not understand technology, so he has avoided making investments in the sector. "Buffett knows that people have become addicted to Apple products and he invests in these addictions". (AAPL.O) after shares of the iPhone maker surged. Indeed, my colleague Shawn Tully has argued that the company's lack of diversity-more than 70% of its sales come from the iPhone-and the fact that Apple is already dominant in the smart-phone market make it almost impossible for Apple to live up to investors' expectations.
"We don't want to go over 10 per cent, virtually on any stock".
Share repurchases have become increasingly popular over the last five years, bringing into debate the merits of them.
"Today, I would rather prep for a colonoscopy than issue Berkshire shares".
Even so, news of an investment by Mr Buffett continues to make stock market waves, as did his purchases of Apple and U.S. airline stocks past year.