Buffett's Apple commitment over the past two years has surprised many, given his historical aversion to companies associated with the technology sector.
"If you look at Apple, I think it earns nearly twice as much as the second most profitable company in the United States", CNBC quoted Buffett as saying. Shares of Apple were contributing about 30-points to the price-weighted Dow after a report from CNBC late Thursday said Warren Buffett's Berkshire Hathaway Inc. acquired some 75 million additional shares of the iPhone maker during the first quarter.
The company had been widely expected to reward investors after repatriating most of its more than $250 billion in overseas cash after the tax overhaul that President Trump signed in December. At that point in time, no one bothered to question how many BlackBerry devices the company would sell in any one given quarter.
As reported by sources, the news of Buffett has added to his sizable stake in Apple.
Berkshire had $116 billion in cash at the end of past year, so has plenty of spare money to make big investments. Apple did report flat growth in iPhone unit sales, but increased iPhone revenue pleased investors and shows the higher-priced iPhone X is performing well.
Apple reported $61.1 billion in revenue for the March quarter, up from $52.9 billion past year, and promised $100 billion in additional stock buyback.