The SEC revealed earlier this week that Warren Buffett and Berkshire Hathaway have increased their position in Apple (AAPL) by 55%. And they’re not the only ones. Just how much action did Apple see?
Apple Stock Prices Continue To Rise
Berkshire Hathaway acquired 5.4 million shares of Apple stock, bringing their total to 15.2 million shares within the portfolio. Another notable buyer, Jim Simons of Renaissance Technologies, purchased 1,096,033 shares at about $108.5 million. So why the fuss about Buffett?
Other than the fact that a 5,000,000 share acquisition of any stock is “of note”, the reason to keep an eye on Apple is that Buffett is doing something he’s generally not done in his decades of wealth management…
He’s buying tech.
So why Apple? And why now?
Reports are showing that the company has slipped to fifth in the overcrowded Chinese phone market. That’s a sign to abandon ship …. Isn’t it? Especially when we factor in that although India’s smartphone market grew last quarter, Apple reported a drop in exports to India.
So what gives?
The truth is, things are going pretty great for Apple. While they may be struggling overseas with phone sales, Apple claims to have slightly beat third quarter estimates for iPhone sales, with some in the company suggesting demand for the iPhone was stronger than anticipated.
And in other exciting Apple news, the company is in talks with Twitter (TWTR) to be added to Apple TV. Apple has long been rumored to want to enter the streaming/original content market, but has not taken that leap. A deal with Twitter could change that, and could change that quickly.
The news also gave a bump to Twitter’s stock prices. However, Twitter is also implementing live streaming relationships with ESPN, CBS News, and all four major sports leagues.
Watch this video from LCG as they predicted Apple's stock issues last January 25, 2016.
Apple’s play into the TV space is incredibly appealing to us here at The Capitalist, especially with the possibility of teaming up with Twitter to stream live sports – something Netflix, Hulu, and Amazon simply do not offer. You can expect to see Apple take on a bull position in the near future, and we say ride it.
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