Published: Wed, May 09, 2018
Markets | By Erika Turner

Warren Buffett suggests Apple Inc to buyback more shares

Warren Buffett suggests Apple Inc to buyback more shares

Partial Transcript of Bill Gates on AppleBill Gates: Well Apple's an unbelievable company. It now has a 5 percent stake in the iPhone maker, trailing only Vanguard Group and BlackRock.

The gap between Apple and other USA companies in terms of market cap is equally impressive, with the iPhone-maker now worth over $120 billion more than its nearest tech rivals Amazon ($773B), Microsoft ($732B) and Alphabet ($719B), which are the second, third and fourth in market cap valuations, respectively.

There were many rumors that the US-based company, Apple's favorite iPhone X was a complete disappointment and that the company was struggling to regain its competitive edge.

Apple is now just US$16 per share short of reaching the much-anticipated US$1t mark.

"Anytime you buy a nonproductive asset, you are counting on somebody else later on to buy a nonproductive asset because they think they can sell it to somebody for more money", Buffet lectured. If you buy a bond that's going to pay you 4% a year, you're not going to get any surprises, it's going to pay you 4% a year.

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In the circumstance of not receiving a response for our grievance we are left with no option but to be absent for the ceremony. But it does not make any difference for me because declaration of the award for the movie itself is a matter of pride for me.

In its Q1 2018 report, Apple also announced a new $100 billion stock buyback programme.

He said investors now are much better off owning US stocks, whose prices are elevated but not in a "bubble", and it would take a "nanosecond" for him to choose stocks over 10- or 30-year USA government bonds now yielding around 3 percent.

"I've been familiar with the company", he said, noting that he knew Apple co-founder Steve Jobs. The cheaper the stock is the more they will get for their money. "And the fact that it's clever computer science doesn't mean that it should be widely used, and that respectable people should encourage other people to speculate on it. Bitcoin reminds me of Oscar Wilde's definition of fox hunting: the pursuit of the uneatable by the unspeakable". But in terms of recent times - well - it - it was - it was - it was a company I liked, a business I liked very much.

Buffett says most of Berkshire's businesses are hiring, and several of them are having trouble finding workers. "And we could buy a lot of it". The top tech companies do have a very strong position right now, but Apple has the most of all.

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