Warren Buffett Likes Apple (NASDAQ:APPL), US Stocks Not in “Bubble Territory”

Warren Buffett Likes Apple (NASDAQ:APPL), US Stocks Not in “Bubble Territory”

Warren Buffett Likes Apple (NASDAQ:APPL), US Stocks Not in “Bubble Territory”

$AAPL, $BRK.A

Monday, Warren Buffett said that his conglomerate had purchased about 120-M shares of Apple Inc. (NASDAQ:AAPL) so far in Y 2017 and that US stocks were not in “bubble territory.”

“Apple strikes me as having quite a sticky product,” Mr. Buffett said. He said Berkshire’s (NYSE:BRK.A) Apple stake, at 133-M shares, was worth about $17-B and amounted to Berkshire’s 2nd-biggest holding.

Apple CEO Tim Cook had done a “terrific job,” Mr. Buffett said.

Mr. Buffett said that Berkshire had spent about $20-B on stocks since just before the November 8 Presidential election, also said the US stock market is cheap with interest rates at current levels.

The iconic investor said it was difficult to attempt to find a floor in stock prices and that he did not know what would happen in the near term in the equity market. He said US shares could conceivably “go down 20% tomorrow.”

Mr. Buffett said Berkshire’s positions in airlines remained unchanged. He said pricing shares of airlines has historically been a “very tough game” and that he had never met the CEOs of any of the airlines in which Berkshire holds stakes.

He said he would judge US President Donald Trump according to how the US economy performs overall, how wide participation in a better economy extends, and how safe the country becomes.

Mr. Buffett said that U.S. Secretary of State Rex Tillerson made “a lot of sense.”

On Kraft Heinz’s snubbed bid for Unilever, he said it was never intended to be a hostile offer and that there was not a “backup deal” for the company. Berkshire is a Key investor in Kraft Heinz.

Asked about Berkshire’s $86-B cash pile, he said Berkshire is “always looking” for acquisitions, but that there was “nothing close.”

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:AAPL 137.03 27 February 2017 0.37 137.14 137.43 136.28 9,564,623
HeffX-LTN Analysis for AAPL: Overall Short Intermediate Long
Bullish (0.37) Bullish (0.35) Bullish (0.47) Bullish (0.28)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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