Now that Buffett has shifted to technology stocks, a horde of value investors may follow and ultimately purchase the Nasdaq 100 (QQQ), semiconductors (SMH), and other leading growth investments such as Nvidia (NVDA) and Twilio (TWLO).
As value investors increase their technology allocations, an “AI mega bubble” becomes somewhat more likely.
Warren Buffett is now Apple’s third biggest shareholder — and he wants to own more
Legendary investor admits he was wrong about big tech stocks but predicts ‘bad endings’ for cryptocurrencies
OMAHA, Neb. — Billionaire Warren Buffett has been buying a boatload of Apple Inc shares and on Saturday suggested he would buy even more shares at the right price.
At Berkshire Hathaway Inc’s annual shareholder meeting, Buffett credited Apple with developing “extremely sticky” products to which consumers become attached and endorsed Apple’s decision to buy back its own stock, saying it was the technology company’s most productive use of cash.
“We would love to see Apple go down in price,” Buffett said. Berkshire is now Apple’s third largest shareholder, behind Vanguard Group and BlackRock Inc.
“I’m delighted to see them repurchasing shares,” Buffett said, just two days after he revealed having bought 75 million additional Apple shares, and four days after Apple said it may repurchase US$100 billion of stock. At the end of 2017, Berkshire had owned 165.3 million shares.
“I love the idea of having our 5 per cent, or whatever it is, maybe grow to 6 or 7 per cent without our laying out a dime.”
And Buffett described it as a mistake that he never thought Alphabet Inc’s Google and Amazon.com Inc made sense as investments for Berkshire.
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