Berkshire Hathaway took a US$1 billion position in Apple Inc. in the first quarter, marking a rare foray into the technology sector by the company controlled by legendary investor Warren Buffett.
Berkshire held 9.81 million shares of Apple as of March 31, valued at roughly US$1.07 billion as of that date, the Wall Street Journal reported, citing US regulatory filings.
The investment is significant as Buffett has over the years largely avoided tech stocks, saying that he doesn’t understand the sector and arguing that it is difficult to defend its competitive advantages.
Buffett told the Journal in an email that the Apple investment was made by one of his two stock-picking deputies.
Apple is likely to have been seen as a good opportunity as the tech giant’s shares are off sharply from last summer’s highs amid concerns over slowing sales growth.
Apple traded above US$130 a share last July and ended the first quarter at US$108.99 before continuing to fall, the Journal noted.
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