- Warren Buffett shared his thoughts on Apple following its big event on Monday in interviews with Yahoo Finance and CNBC.
- He said Apple is a long-term investment, adding that: “If you have to closely follow a company, you shouldn’t own it.”
- Buffett’s Berkshire Hathaway owns a 5.4% stake in Apple, but he famously doesn’t use an iPhone – or any smartphone for that matter. He uses a flip phone instead.
Apple shares fell by as much as 2.2% on March 25 following its star-studded event, during which it unveiled new subscription services for TV, gaming, and news. But that doesn’t concern renowned investor and Berkshire Hathaway CEO Warren Buffett.
When speaking with Yahoo Finance editor-in-chief Andy Serwer on Monday, Buffett said that “if you have to closely follow a company, you shouldn’t own it.”
That’s because Buffett sees Apple as a long-term investment. “If you owned the best auto dealership in town, the best brand, you wouldn’t drop by everyday and say you know, ‘How many people have come in today?”‘ he said to Yahoo Finance. “You buy it knowing there’s 365 days a year, and you’re going to own it for 20 years, so that’s 7,300 days, and things are going to be different from day to day and year to year.”
Buffett’s Berkshire Hathaway owns a 5.4% stake in Apple, but he famously doesn’t use the company’s biggest product -the iPhone. Buffett uses a Samsung flip phone, which he showcased on CNBC’s Squawk Box last year. It’s unclear exactly what type of phone Buffett uses, but CNBC’s Fred Imbert pointed out on Twitter that it looks a lot like the Samsung Haven. “Tim Cook sent me a Christmas card again this year saying he’s going to sell me an iPhone this year,” Buffett said to CNBC. “He keeps sending me these reminders every Christmas.”
Buffett himself is evidence that the smartphone market isn’t saturated just yet. “When I actually buy it, it’s all over, folks,” he said to CNBC in reference to the iPhone. “The last person has bought it.”
Apple took the wraps off its long-rumoured TV service on Monday,Apple TV Plus, which provides access to a slate of high-budget Apple original productions. The company is working with talent including Oprah Winfrey, Reese Witherspoon, Jennifer Aniston, Steve Carell, Steven Spielberg, and Jason Momoa among others, all of which appeared at the event to discuss their upcoming projects that will be part of the service.
Apple also debuted a redesigned version of the Apple TV app, an Apple Arcade gaming service, and a paid tier of Apple News that grants access to content from magazines, newspapers, and digital outlets.
But the event left Wall Street with several unanswered questions, particularly around the pricing for Apple TV Plus and Apple Arcade. The event was being closely watched as a major effort by Apple to bolster revenue from its services business as it grapples with slowing iPhone sales.
“As far as this event is concerned, I think there was an expectation that we would get answers to a number of things we didn’t get answers to,” Angelo Zino, an equity analyst at CFRA, told Business Insider sister site Markets Insider.
Even if Apple’s TV service doesn’t turn out to be a blockbuster hit, the company can afford to “make a mistake or two,” Buffett recently told CNBC. “I’d love to see them succeed, but that’s a company that can afford to make a mistake or two,” he said. “You don’t want to buy stock in the company that has to do everything right.”
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