Warren Buffett investment pushes Apple closer to $1T

Warren Buffett investment pushes Apple closer to $1T

Warren Buffett investment pushes Apple closer to $1T

Apple is riding high on glowing comments from legendary investor Warren Buffett - enough that experts say the iPhone maker could soon become the first company to touch a US$1 trillion ($1.4t) market capitalisation.

But amid some concerns that the conglomerate will take a hit if that happens, Buffett isn't at all anxious, according to a Morgan Stanley note on Berkshire Hathaway's annual letter to shareholders. The Oracle of Omaha added that he had already developed a perspective on the tech giant's business.

"I suspect that eventually, when Democrats control both houses of Congress and the White House, that we will get single-payer medical care, and I don't think it'll be much more friendly than any of the PBMs", Munger said. His company now has a 5% stake in Apple worth around $11 billion. It's wonderful because it does create a rising price, it does create more buyers and it's better if they don't understand it.

"Apple's an incredible company, and the multiple's not very big", he added.

Buffett remained bullish while some investors grew anxious over Apple's growth prospects. Apple sold 52.2 million iPhones in the first quarter, up from 51 million during the same period a year earlier.

More news: An 8-Year-Old Fan Receives Surprise Hospital Visit From Taylor Swift

Wall Street analysts expect Apple's stock price to surge 11 per cent and reach US$195 within the next 12 months, propelling its market cap to US$989b, according to Thomson Reuters data. The iPhone contributed $38 billion of the company's $61.14 billion in total revenue. "I'm delighted to see them repurchasing shares".

The famed 87-year-old investor is known for his loyalty to the brands that he invests in, such as his affinity for Cola-Cola.

The only person more stoked about the investment than Buffett may be Tim Cook over at Apple, who announced he was "thrilled" - at least in part because Buffett could help Apple crack the big trillion, a mark which is now only distant by a $20-per-share increase.

"A shareholder sent me an iPhone X", Buffett told Claman with a laugh. A very nice fellow, he even even explained it.

"If a $100 billion deal came along that Charlie and I really liked, we'd get it done", he said.

Related news