Apple stock surges after Warren Buffett’s hefty investment

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Warren Buffet has been wary of making tech-related investments in the past because he reportedly doesn’t understand it, but apparently, the octogenarian investment guru has had a change of heart.

Berkshire Hathaway Inc (BH), the conglomerate run by Buffett, disclosed in a regulatory filing on Monday, May 16, that it purchased more than 9.8 million shares in Apple during the first quarter.

The move marks BH’s first investment with Apple, which has been steadily adding to its stake in IBM (International Business Machines) in recent years, as per reports from stock market website, MarketWatch.

Shortly after the purchase, the California tech giant’s stock experienced a 2 percent surge during premarket trades.

BH acquired its position at an average price of about $109 a share, the report said, while the value of the original investment, $1.1 billion, has already dropped significantly due to the slow demand for iPhones in recent months.

The company also disclosed that it had sold over 99 percent of its holdings in Procter & Gamble, retaining just 315K shares in the multinational product manufacturer, to make room for the Apple investment.

BH also reportedly thinned its holdings of multi-national retail corporation, Walmart by 1.7%

Apple’s stock price, meanwhile, has since fallen to just above $90, meaning that Berkshire’s stake in Apple is now worth about $888 million.

BH is also reportedly eyeing  a takeover bid for the core assets of another struggling Internet company, Yahoo. Khristian Ibarrola. Inquirer.net