Warren Buffett buys stake in Apple
Berkshire is also backing a takeover bid for the core assets of struggling Internet company Yahoo.
Berkshire Hathaway, owned by Warren Buffett, on Monday, announced purchase of more than 9.8 million shares worth $1.07 billion, in Apple during the first quarter, said media reports. This is first investment by the company in Apple.
According to a Patently Apple report, apart from Apple, IBM is the only technology company that Berkshire owns a significant stake in.
Investors have been worried due to slowdown of demand for iPhones after Apple reported disappointing earnings last month, said a kabc report.
The report suggested that, so far in 2016, the shares of Apple are trading down 14%--making it one of the worst stocks in Dow this year along with Intel and Goldman Sachs.
Though, when Berkshire's investment news came out, the shares of Apple surged 2%, said the report.
Berkshire is also backing a takeover bid for the core assets of struggling Internet company Yahoo, the report added.
Further, the Financial Times report said, "The stake in Apple also represents a departure for Buffett". In the past, Buffett had said that investing in technology companies are too complicated.