The Oracle of Omaha, famed investor, and head of Berkshire Hathaway, Warren Buffett, is adding to his already large stake in Apple.
According to a new report from CNBC, Berkshire has bought “just a little” more Apple stock since June 30, when it had a 252 million share stake now worth more than $56 billion USD.
Buffett told CNBC that he continues to buy Apple shares because of the strength of the company’s brand and ecosystem. The investor was particularly enthusiastic about the iPhone, describing Apple’s flagship product as an indispensable device for a large portion of the world’s population.
Speaking as Apple readies the release of a trio of new models, he said iPhones provide huge value to the hundreds of millions of people who “practically live their lives” by them. Having said that, Buffett doesn’t see Apple raising the price much over $1,000.
“It’s got competition so you can’t push the price, but in terms of its utility to people and what they get for a thousand dollars… you can have a dinner party that would cost that, and here this is, and what it does for you, it’s incredible,” he said.
“They’ve got to keep having the product that this huge clientele regards as indispensable,” Buffett said of Apple. For customers, “the iPhone is enormously underpriced” compared with the utility it offers, he said.
Buffett’s praise followed news that Apple will host its annual corporate event on September 12, where it’s expected to unveil a new suite of iPhones that could potentially include a model with a so-called ‘edge-to-edge’ screen that is similar to the current iPhone-X.