Buffett's investment tip; YouTube milestone; riding with SpaceX
- Author: Joanne Flowers Mar 01, 2017,
Mar 01, 2017, 11:38
"If they can get to the Sweet 16, if there's only one of them, whoever it is, he or she gets a million dollars a year for the rest of their life", Buffett told CNBC.
Shares of Apple (AAPL) have been on a tear in 2017.
Unless other stock buyers have changed, Berkshire would be Apple's fifth-largest shareholder, behind investment firms Vanguard, 6.43 percent; BlackRock, 4.22 percent; State Street, 4.19 percent; and FMR, 3.01 percent, according to Yahoo Finance.
As for Apple, Buffett said there is an "incredible stickiness" to the company's products and that it's a pretty nice franchise to have.
Buffett told CNBC Monday morning that Berkshire Hathaway, the conglomerate that he runs, now owns about 133 million shares of Apple - worth more than $17 billion at current prices.
He also pushed back against the assertion that share buybacks are "un-American" and offered a lesson in when they make sense. That compares with $105.26 at the end of 2015.
Buffett says he hasn't bought any shares in Apple since the earnings announcement, but he didn't give any indication that his enthusiasm for the company or its stock had waned. "Tim Cook has been extremely intelligent about using the capital", he added.
Is this still a good time to get into airline investing? "Both large and small investors should stick with low-priced index funds", he says. Apple now has a market value of 717 billion dollars.
Asked whether he would vote for Trump in 2020, Buffett said, "Well, it depends on who he is running against".
You can bet that plenty of Berkshire Hathaway employees will fill out the company's March Madness bracket this year.
Don't expect to hear day-to-day criticism of President Donald Trump from Warren Buffett. "I see kids sticking to the iPhone and upgrading to newer models". 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. The cost of the handset (and the iPad and the Mac), which can now be purchased via monthly "subscription" fees and replaced every 12 months is an access charge that consumer willingly pay to utilize the services. It also makes Apple one of Buffett's company's largest holdings, second only to Coca-Cola.
Apple recently reported fiscal first-quarter results that included sales of 78 million iPhones in the last three months of 2016.
Berkshire Hathaway's Warren Buffett talks about unwinding his position in Dow Chemical.