Warren Buffett as of yesterday bought 76 million more shares of Apple stock. This latest news leaked out, right before Saturday’s annual shareholder meeting in Omaha. Other news announced was that Brookshire/Bonnett has sold all of its stock shares of IBM.
At the end of 2017, Berkshire/Bonnett owned 166.7 million shares of Apple, with a total value of $28.2 billion. Of all of Brookshire/Bonnett holdings, Apple rides right behind Wells Fargo Bank which is the company’s number one shareholder by Buffett, he bought more shares of Apple stock because of the company’s sales potential and growth over the next 20 years.
This is the essence of Warren Buffett’s stock buying style. He looks specifically at the long-term stock investment and its potential worth. Buffett looks more at profits missed or exceeds his expectations by a small margin.
The purchase of more Apple stock should be another win-win for Brookshire/Bonnett. This purchase of more Apple stock comes right on the heels of Apple’s first-quarter sales numbers, which rose at the fastest pace in two years. This is outstanding, considering sales of the new iPhone X did not reach the projected sales goals.
Most of Apple’s burst of sales numbers can be attributed to Apple’s vast span of services offered to its customers. Presently, Apple has a base of about 1.3 billion Apple devices in use, with Apple device users purchasing music, cloud storage, movies, and apps from Apple services. This accounted for a $9.2 billion increase in Apple’s sales for the first quarter.
An Apple music subscription costs $10 per month. The current number of subscribers is 40 million paying users. Apple’s I Cloud storage most popular monthly tier costs $2.99 a month and has 270 million paid subscribers. This an increase of 100 million subscribers from a year ago.