Reasons Warren Buffett Is Buying Apple Stock

Businessman looking into a crystal ball

Apple Inc. stock recently purchased by Berkshire Hathaway Inc., Warren Buffett's holding company, increased in value by $1.1 billion in six weeks, a required filing says.

The purchases expanded Berkshire's stake in the technology giant to $6.6 billion as of December 31.

Today, as Apple's stock price hit a record high, crossing over $135 a share, that stake is worth more than $7.7 billion.

Buffett's company also invested $2.1 billion in each of the four biggest U.S. carriers: American Airlines Group, Delta Air Lines, Southwest Airlines and United Continental Holdings. "Buffett clearly did not believe that scenario", Cramer said on "Squawk on the Street". Apart from IBM, a stock Buffett followed for more than 50 years before finally buying in 2011, he had shown little interest in technology stocks.

Equities researchers at Argus initiated coverage on shares of Berkshire Hathaway Inc. As for the rationale behind buying the airlines, we were a bit shocked to see the transactions (especially of this magnitude), as Buffett has shunned the industry ever since his bad experience with his bet on US Airways back in 1989-95, calling the investment a mistake in nearly every annual letter from 1989 to 1996.

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Berkshire Hathaway Inc. filed a quarterly update on its USA stock portfolio with the Securities and Exchange Commission on Tuesday.

Shares of Apple closed on Tuesday up United States dollars 1.73 at USD 135.02, also a record closing high. He has said that investments of less than $1 billion are likely to be the work of Ted Weschler or Todd Combs, who each handle about $9 billion for Berkshire.

But their decisions have sometimes influenced Buffett, as when Berkshire previous year paid Dollars 32.1 billion for aircraft parts maker Precision Castparts Corp, once a Combs investment. The solid increase in user base is good sign for Sirius, as 84% of its revenue comes from subscriptions.

His comment comes after Berkshire almost quadrupled its stake in Apple last quarter.

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