Warren Buffett calls Apple probably the best business I know in the world

VIDEO4:0904:09
Warren Buffett on his new iPhone: ‘My flip phone is permanently gone’

Warren Buffett told CNBC on Monday that Berkshire Hathaway‘s “third largest business,” after its insurance and railroad interests, is its stake in Apple.

“I don’t think of Apple as a stock. I think of it as our third business,” Buffett said on “Squawk Box.”

In the Oracle of Omaha’s annual letter to Berkshire shareholders, released on Saturday, showed a 5.7% yearend ownership in Apple stock.

In a Dec. 31, 2019 filing with the government, Berkshire owned more than 245 million shares of Apple, worth nearly $72 billion.

Over the past 12 months, Apple shares are up about 80%.

“It’s probably the best business I know in the world. And that is a bigger commitment that we have in any business except insurance and the railroad, Buffett said.

Berkshire’s vast insurance businesses includes Geico Auto Insurance and its railroad is BNSF.

Buffett said he wished he bought Apple long before he did. “I should have appreciated it earlier.”

In May 2018 CNBC interview, Buffett said at the time that Berkshire Hathaway bought 75 million more Apple shares, adding to its already huge stake at the time of 165.3 million shares. Berkshire Hathaway, through one of Buffett’s lieutenants, bought its first 10 million Apple shares in May 2016.

Buffett, a self-admitted Luddite, resisted using an iPhone in favor of his flip phone even as Berkshire bought Apple stock. But on Monday, he told CNBC that he finally gave in and switched to an iPhone.

“My flip phone is gone,” he said. “I’ve been getting several of them” over the years, including from Apple CEO Tim Cook.

VIDEO4:0904:09
Warren Buffett on his new iPhone: ‘My flip phone is permanently gone’

Source: https://www.cnbc.com/2020/02/24/warren-buffett-says-apple-is-probably-the-best-business-i-know-in-the-world.html

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