Warren Buffett has been buying a lot of Apple shares recently, saying that he would buy even more at the right price. At Berkshire Hathaway’s annual shareholder’s meeting, Buffet endorsed Apple’s buyback program.
Buffett said that the buyback program would be the most effective use of the company’s cash. In a statement, he said:
“We would love to see Apple go down in price. I’m delighted to see them repurchasing shares.”
Earlier this week, Buffett revealed that he had bought 75 million additional Apple shares, which means that Buffett now owns approximately 5 percent of Apple. In his eyes, Apple is the perfect type of stock for Berkshire Hathaway because of the way the company operates.
“I love the idea of having our 5 percent, or whatever it is, maybe grow to 6 or 7 percent without our laying out a dime.”
Apple developers products that Buffett describes as being “extremely sticky, meaning that customers become attached to these products and in turn support Apple as a company.