Warren Buffett, the chief executive officer of investing conglomerate, Berkshire Hathaway, has said that with the price being right he would be interested in acquiring more shares of technology giant Apple. During the annual shareholder meeting of Berkshire Hathaway, Buffett praised Apple for building products which had a high customer loyalty. Buffett also endorsed the decision of Apple to carry out a share buyback arguing that currently it was the most productive way of using cash for the tech company.
At the moment Berkshire Hathaway is now the third biggest shareholder of Apple behind BlackRock Inc and Vanguard Group. Recently Buffett disclosed that the Berkshire Hathaway had acquired an additional 75 million Apple shares. This was days after Apple revealed that it would be repurchasing stock worth $100 billion. At the close of last year the number of shares that Berkshire Hathaway owned in Apple amounted to 165.3 million. During the annual meeting of Berkshire Hathaway shareholders Buffett admitted that it was a mistake on his part for not purchasing the stock of Amazon and Alphabet.
Any other business
Other issues that Buffett and longtime business partner, Charlie Munger, addressed during the shareholder meeting include Wells Fargo, healthcare, China, guns among other subjects. According to Buffett China and the United States were unlikely to engage in a trade war since it was in the interests of the two countries to avoid doing something foolish.
“It is just too big and too obvious … that the benefits are huge and the world is dependent on it in a major way for its progress, that two intelligent countries (would) do something extremely foolish,” said Buffett.
On the corporate tax cuts in the United States Buffett said they had proved to be good for shareholders though he urged caution with regards to long-term effects since this was hard to gauge. With regards to virtual currencies Buffett said there would be a bad ending for investors. Buffett also said long-term United States government bonds were not a good investment since their returns would be chipped away by inflation.
Buffett also came to the defense of Wells Fargo as well as its chief executive officer, Tim Sloan. This was after a question was posed as to when Berkshire Hathaway would drop the bank. Currently Wells Fargo is one of Berkshire Hathaway’s biggest common stock holdings. Though Buffett admitted that the bank had made mistakes he still sees it as a good investment compared to its main competitors.