He drinks Coca-Cola and eats at Dairy Queen, presumably in part to promote the stocks and companies owned by Berkshire Hathaway. So when will CEO Warren Buffett, who said his company has bought more Apple stock than anything else in the past year, ditch his flip phone and get smart(phone)?
“Tim Cook has asked me that,” Buffett said, in referencing the Apple CEO, during an appearance Monday on CNBC’s “Squawk Box.” “Well, the answer is just I’m out of touch. But, I tell Tim that as long as I haven’t gotten one, the market’s not saturated. I mean, the day I buy one, there’s probably nobody left after that.”
While he doesn’t own an iPhone himself, Buffett does understand the appeal. He called it a “very sticky product.”
“Apple has an extraordinary consumer franchise,” Buffett told CNBC. “I see how strong that ecosystem is, to an extraordinary degree. … You are very, very, very locked in, at least psychologically and mentally, to the product you are using.”
Berkshire Hathaway is also locked in on Apple, as he revealed when asked about his favorite stocks today.
“If you look at our holdings, you would assume that we like them in the order in which they rank by dollar value of holdings, but if you look at them in terms of recent purchases over the last year we’ve bought more Apple than anything else,” he said
Among Berkshire Hathaway’s top holdings, Apple is valued at $28.2 billion on 166.71 million shares, which puts it just behind Wells Fargo at $29.3 billion on 482.54 million shares.