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Why Warren Buffet Wants Apple to Fall More


Feb. 25 2019, Published 12:06 p.m. ET


In the fourth quarter of 2018, Apple was one of the worst-performing tech stocks. The stock lost nearly 30.1% of its value on reports of weakening sales in China. The company shocked investors again on the first trading day of 2019, January 2, when CEO Tim Cook announced a cut in Apple’s first-quarter guidance. Apple stock then tanked 10% on January 3 before seeing a gradual recovery since then.

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Warren Buffett wants Apple to fall more

Today, in an interview with CNBC, Warren Buffett said that at the current price, he’s not buying Apple stock. However, he added, “If it were cheaper, we’d be buying it.”

Surprisingly, Buffett still seems to be bullish on Apple. He noted, “I don’t see myself selling – the lower it goes, the better. I like it, obviously.”

On February 14, the “Oracle of Omaha’s” Berkshire Hathaway (BRK-B) revealed in its latest 13F that it sold about 2.89 million shares of Apple, in the fourth quarter of 2018. This sale reduced its total investment by 1.1% compared to the third quarter of 2018. In the third quarter, Berkshire Hathaway bought about 522,902 more AAPL shares.

As of February 22, Apple has risen 9.7% year-to-date. Other US companies (SPY) General Electric (GE), Oracle (ORCL), IBM (IBM)(RHT), Amazon (AMZN), Boeing (BA), and Alphabet (GOOG) have risen 34.3%, 16.2%, 22.5%, 8.6%, 31.5%, and 6.9%, respectively. In contrast, Kraft Heinz (KHC) has fallen 18.8%.


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