Apple Inc. (NASDAQ:AAPL) was highlighted on Saturday after Warren Buffett described how Berkshire Hathaway’s roughly $35 billion bet on the iPhone maker a decade ago ballooned to about $185 billion on a pre-tax basis, counting dividends and gains, largely under CEO Tim Cook. The backdrop is that Apple is also adjusting its internal playbook as Cook prepares to step down, including a pullback in buybacks and a sharp increase in research spending as John Ternus is lined up to take over.
In the remarks explained during Berkshire Hathaway’s annual meeting, Buffett said Berkshire effectively committed about 10% of its resources to Apple by buying shares and letting Apple’s management do the heavy lifting. He said the position remains Berkshire’s biggest holding, even though the conglomerate does not treat every stock as a forever asset.
Buffett’s $35 Billion Investment Transformation
During the meeting shared by CNBC, Buffett also pointed to Apple’s 50th anniversary, saying the company can still feel young despite the milestone. He contrasted the public’s familiarity with Steve Jobs with how few investors knew Cook’s name when he took the top job after Jobs’ death.
“I think just within the last week …
This post was originally published here
