May 18, 2016 12:23 am | Updated 3 years ago.
Berkshire Hathaway, the holding company of Mr. Warren Buffet, announced the acquisition of $1 billion stake in Apple Inc. It is estimated that Berkshire Hathaway purchased 9.81 million shares in the IT firm at an average price of $109 a share. Apple’s position as one of the most valuable companies had registered a fall in the last one week with share prices dropping by almost 30%.There was also a drop in Apple’s revenue in the first quarter of 2016 owing to a fall in the sale of iPhone.
Berkshire Hathaway has become the fifty-sixth largest shareholder in Apple after this deal. In the year 2011, it purchased shares of IBM and became their largest shareholder. According to industry experts, Mr. Buffet will help a group of investors led by Dan Gilbert, founder of Quicken Loans, by providing them with debt financing to bid for Yahoo, an internet firm. Mr. Buffet admitted that he had been slow in investing in tech companies.
Analysts believe that Apple’s revenue is likely to decrease by 10percent this year but the company will rebound once the iPhone 7 is unveiled towards the end of the year. Apple may register a growth of 10-15 percent after entering new markets such as automobiles and virtual reality.
Date of Publication: May 16, 2016