Warren Buffet is taking a bite of Apple and it seems to be a huge one. Based on a report by Reuters, Buffet, through Berkshire Hathaway Inc., is increasing his stake in the tech giant. This news comes even after other prominent investors are losing some of their shares in the company.
Reports say that Berkshire Hathaway Inc. has increased its stake in Apple by as much as 55%. Apple stocks have been rising in the past weeks. Berkshire's investment in Apple was first revealed earlier in the year. But it was not the legendary investor who was handling it. Apparently, one of the portfolio managers was taking care of the deal.
Analysts say that it might not be Buffet who handled the purchase recently. They say that Buffet does not have a tendency to sell the stocks that he purchases or he will only do so after a long time. They believe that the move to purchase more Apple stocks is driven by the belief that the company will have some kind of catalyst later this year that could boost its value.
There is no wonder what that catalyst could be. Apple is set to launch the latest version of its flagship product, the iPhone 7. That product launch could possibly boost the value of Apple's shares as the new version of the smartphone is eagerly awaited by fans of the company. The new phone promises new features that would mark it as a real improvement over iPhone 6 and iPhone 6S.
According to a report by CNBC, it is not just Apple where Berkshire Hathaway has increased its stake. It also purchased shares from other companies like Deere and Wal-Mart. But by far, the biggest news is that Warren Buffet is interested in getting more out of the Apple juggernaut.