Sticky and tasty

27 February 2017 By Robert Cyran Follow @rob_cyran

The Berkshire Hathaway boss reckons the iPhone maker might be the first company worth that much. Growth has slowed, but Apple will continue to churn out huge profit for the foreseeable future. Just valuing the underlying business in line with the S&P 500 would hit the mark.

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Context News

Warren Buffett, chief executive of Berkshire Hathaway, told CNBC on Feb. 27 that his conglomerate had purchased "70 million plus" shares of Apple so far in 2017, taking Berkshire’s stake to 133 million shares, worth about $17 billion. "Apple strikes me as having quite a sticky product," Buffett said.

When asked whether Apple or Berkshire Hathaway would be the first company to reach a $1 trillion valuation, Buffett said he would bet on Apple.

Apple’s market capitalization at its $136.66 per share closing price on Feb. 24 was $717 billion.

The first paragraph of the context news has been corrected after the CNBC transcript of the Buffett interview shows the size of Berkshire Hathaway's 2017 share purchase was "70 million plus" shares, not 120 million.

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