Warren Buffett says economy remains strong

Warren Buffett Buffett

Warren Buffett

Apple stock surged Friday, when Warren Buffett revealed his investment company, Berkshire Hathaway, had acquired 75 million more shares.

Apple's share price has once again hit record heights after billionaire Warren Buffett repeated his strong support for the tech company.

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.

A cryptocurrency conference, Bitcoin Day in Omaha, was coincidently scheduled during the same weekend as the Berkshire Hathaway annual shareholder meeting, but organizers had to cancel after the event's location host cited "conflict" with events on the same day.

Apple, whose stock hit a new record high Monday, has been a major victor for Berkshire Hathaway: Apple's stock price has roughly doubled in the two years since Berkshire initially disclosed its stake.

Apple closed 0.7% higher at $185.16 on Monday, giving the company a market cap of $939 billion. "We're betting on the success of Apple products like the iPhone, and I see characteristics in that that make me think it's extraordinary", Buffett said.

Among various reasons of the utmost interest in Apple is the massive cash reserve to make company stock buybacks.

"I think it's extremely hard to find acquisitions that would be accretive to Apple that would be in the $50 billion, or $100 billion or $200 billion range", Buffett said.

Apples huge stock buybacks could possibly mean an even bigger profit for Berkshire Hathaway and an even bigger ownership, seeing as how they own around 5 percent of the shares.

"And you get that and it will feed off itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings", Buffett said.

The other rejected measure would have encouraged more Berkshire subsidiaries to produce sustainability reports.

Buffett, famed for his love of junk food, has said spiraling healthcare costs are responsible for 18 percent of USA gross domestic product, up from 5 percent in 1960, and he wants to slash a few percentage points off.

Although investors enjoy speculating on which companies Apple should acquire, Buffett, ironically, is quite pessimistic about its M&A potential. When I buy Apple, I know that Apple is going to repurchase shares.

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