As Apple’s stock price soared nearly 7% on the 28th, Warren Buffett’s assets, who is investing in Apple, increased by $9.8 billion in a day, CNBC, an economic media outlet, reported.
Buffett, known as a value stock investor, does not hold technology stocks well, but Apple is an exception. He holds 5% of Apple’s total shares.
Apple’s stock price soared nearly 7% on the 28th due to better-than-expected earnings announcement.
Apple closed at $170 on the New York Stock Exchange, up 6.98% from the previous trading day. Due to Apple’s good performance, the NASDAQ jumped 3.13%.
The reason why Apple soared on the same day was that its performance was better than expected. Apple said on the previous day that it recorded the highest quarterly performance ever in its earnings announcement shortly after the market closed.
During the fiscal quarter, which ended on the 25th of last month, Apple’s sales rose 11% year-on-year to $123.9 billion, and exceeded expectations ($118.66 billion). Net profit per share was $2.10, an increase of 25% from the same period last year and more than expected (1.89 dollars). iPhone sales also increased by 9%.
Buffett’s assets, which holds a 5% stake in Apple, also surged as Apple’s stock price soared nearly 7% due to such favorable performance.
Buffett does not prefer technology stocks, but Apple is the exception. He first invested in Apple in 2106 and continued to increase his stake. Currently, Apple shares account for more than 40% of Buffett’s investment company Berkshire Heatherway’s portfolio (investment composition).
