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Buffett bought more Apple last quarter, saying he would have added more if the stock had not risen

Warren Buffett and Charlie Munger at Berkshire Hathaway’s shareholders’ meeting on April 30, 2022.

CNBC

Warren Buffett bought the dive in his No. 1 stake in Apple during the technology giant’s divestment in the first quarter.

Berkshire Hathaway’s chairman and CEO told CNBC’s Becky Quick that he raised $ 600 million worth of Apple shares after a three-day drop in the stock last quarter. Apple is the conglomerate’s largest single stock of $ 159.1 billion at the end of March, filling about 40% of its stock portfolio.

“Unfortunately, the stock rose again, so I stopped. Who else knows how much we would have bought?” the 91-year-old investor told Quick on Sunday after Berkshire’s annual shareholders’ meeting.

There have been plenty of buying opportunities for Buffett this year as Apple shares came under pressure due to fears of rising prices and supply chain restrictions. The stock fell 1.7% in the first quarter with several three-day losing streaks throughout the period. Apple once fell eight days in a row in January, and the stock fell nearly 10% in the second quarter.

Berkshire began buying Apple shares in 2016 under the influence of Buffett’s investment deputies Todd Combs and Ted Weschler. Berkshire is now Apple’s largest shareholder outside providers of index and exchange traded funds.

Buffett previously called Apple one of the four “giants” in his conglomerate and the second most important after Berkshire’s cluster of insurance companies, thanks to its CEO.

“Tim Cook, Apple’s genius CEO, rightly considers users of Apple products his first love, but all of his constituencies also benefit from Tim’s managerial touch,” Buffett’s annual 2021 letter reads.

“Oracle of Omaha” said he’s a fan of Cook’s stock repurchase strategy and how it gives the conglomerate increased ownership of every dollar of iPhone maker’s earnings without the investor having to lift a finger.

Apple said last week that it approved $ 90 billion in share buybacks, and maintained its pace as the public company that spends the most on buying its own shares. It spent $ 88.3 billion on repurchases in 2021.

Cook attended Berkshire’s annual meeting last weekend.

The conglomerate has also benefited regularly from the technology giant over the years, averaging about $ 775 million annually.

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