Apple's Shares Surge As Warren Buffet Increases Stake

Warren Buffett and Elon Musk

Warren Buffett and Elon MuskMore

"It's just too big and too obvious that the benefits are huge and the world is dependent on it in many ways for its progress", Buffett said.

Warren Buffett was asked at the Berkshire Hathaway annual meeting about the recent trade tensions between the United States and China.

Investors in America tend to turn to Mr Buffett and see what he is doing with his billions during bad times. The stock traded at a discount to its 60-day VWAP through much of the quarter, and Apple spent $18 billion to buy up its own shares, according to filings.

On Friday, Apple's stock hit an all-time high after Berkshire disclosed it bought an additional 75 million shares of the iPhone maker in the first three months of the year.

Berkshire Hathaway has stakes in a wide variety of companies including Coca-Cola, American Express, Wells Fargo and Delta Air Lines.

"I'm delighted to see them repurchasing shares", Buffett said, four days after Apple announced that it may repurchase US$100 billion of stock.

"I love the idea of having 5 percentage, or anything it can, perhaps grow to 7 or 6 percent with no laying out a dime". "If you look at Apple, I think it earns nearly twice as much as the second most profitable company in the U.S".

Buffett's initial commitment to Apple surprised many given his usual aversion to companies in the technology sector, but the billionaire views Apple more as a consumer products company.

The comments come after President Donald Trump's recent trade attacks on China including proposed tariffs on $US50 billion worth of Chinese goods and tariffs on imports of steel and aluminium.

The California-based giant's market valuation, meanwhile, has surpassed the $930 billion mark.

Last week, the so-called "Oracle of Omaha" argued that investing in bitcoin is a gamble, not an investment. It actually led Berkshire to a net loss in the quarter, even though operating profit climbed.

APC ward congresses end in violence
PGA: Jason Day seizes control at Quail Hollow