US billionaire Warren Buffet has disclosed in a regulatory filing that Berkshire Hathaway has acquired $1bn worth of stake in tech company Apple.
Berkshire Hathaway now holds about 9.81 million shares in Apple and according to the regulatory filing; each share was bought at a price of $109.
The investment comes following disclosure by another billionaire investor Carl Icahn, who sold his entire stake in Apple amidst its struggle in Chinese market.
With sales slowing down, Apple’s share prices had fallen from $109 per share to just above $90 per share.
Since, Berkshire Hathaway owned the shares as of March 31; the share value could have dipped from $1.1bn to just about $920m.
With Apple’s share price has fallen, Alphabet, which owns Google overtook Apple as the world’s most valuable company.
Warren Buffet, who is traditionally reluctant to invest in tech companies, has disclosed the investment after making $11bn investment in IBM in 2011.
Earlier this week, there were reports that Buffet backing a bid to acquire stake in struggling internet company, Yahoo.
Warren Buffet has been known for his reluctance in investing in tech industry and this news can be a great boost to the tech giant, which recorded slow growth because of fallen demand for iPhones.
WSJ reports that Warren Buffet had hired two former hedge-fund managers Todd Combs and Ted Weschler few years ago, who could have influenced the decision of picking tech stocks.
A Berkshire shareholder and finance professor at the University of Maryland business school David Kass told Wall Street Journal: "It appears to be a low-risk investment with considerable upside potential…however, I do not think this is an investment that Buffett would make.
"Todd Combs and/or Ted Weschler…perhaps have a better understanding of the competitive advantages Apple possesses vis a vis the technological challenges it might face in the years ahead."
