Three months after Berkshire Hathaway began investing in Apple, Warren Buffett’s investment company dramatically boosted its stake in the iPhone maker, according to a new government filing. The world’s most successful investor now owns nearly $1.5 billion worth of the tech giant’s stock. Yet as recently as 2012 Buffett vowed that he wouldn’t invest in companies like Apple or Google(a.k.a. Alphabet) and that he was uncomfortable betting on fast-growing tech disruptors. “The chances of being wrong with IBM are probably less, at least for us, than the chances of being way wrong in Google or Apple.” Something has changed.
Date: August 17th, 2016
1) Do you agree, or not, with the comment in the article that “Apple’s business model is not that different from Gillette’s razor-and-blade approach, where purchasing the basic service item (the razor) requires you to buy a constant stream of its companion products (the blades)”?
2) Why does it matter, or not, that the world’s most successful investor is making a big play into Apple?