Popular investor and CEO of Berkshire Hathaway Inc. Warren Buffett is the latest big investor in electronics company Apple. Warren Buffett is today the highest investor and shareholder in the company. Over the years he has been continuously been buying the stock which has in turn continuously gained over a decade. Recently he pumped more billion into the company making him the biggest shareholder.
So, why does he invest in this company? In 2017, Warren Buffett revealed that the company made more investments in Apple than in any other company. As of today. Apple is now the second company in terms of shareholding possession by the Berkshire Hathaway Company led by Buffett. The company has invested $28.2 billion in Apple. This comes second after their investment of $29.3 billion in banking company Well Fargo.
Some other companies where they have invested heavily include Coco-Cola, Bank of America and American Express.
Warren Buffett says that the strength of Apple lies in its ability to retain clients. They have actually found a way of keeping the clients coming back for more products. This reason has made him see this as one of the best traits of a business that should encourage investors to place their money in them. Warren Buffett describes the iPhone as a sticky product that consumers cannot let go. The ability to retain consumers is what makes Apple a great company.
Apple has established its products in a different manner from other devices. The iPhone comes with applications that are only available at Apple Store. Most services offered by Apple cannot be found somewhere else. One must stick with their products all the times. Reliance on the company for these services makes many consumers find it hard to switch to android. That business strategy has had Apple always getting billions from their consumers.
However, even as he invests in this company, he does not own an iPhone. Buffett uses a flip phone and insists that he will be the last person to buy an iPhone.