Warren Buffett, the CEO of Berkshire Hathaway, thinks that the iPhone is a very popular product that people would be willing to sacrifice a second car to keep.
Shortly after Apple released its Q2 2023, Buffett met with Berkshire investors, further insight into why Apple is performing. He stated that he doesn’t comprehend the iPhone specifically but understands consumer behaviour, reports Yahoo Finance.
Buffett compared the iPhone to a more valuable item, like a spare vehicle, to explain consumer behaviour.
“Apple is in a position with consumers, where they’re paying maybe $1,500 bucks, or whatever it may be, for a phone,” Buffett said.
“And the same people pay $35,000 for having a second car, and [when] they have to give up a second car or give up their iPhone, they’d give up their second car,” added Buffett.
In April, Buffett made a similar statement, if they were offered $10,000 for their iPhone and promised never to buy another one again, they would refuse.
Buffett openly admires the iPhone, calling it an exceptional product unlike anything else his company owns in terms of shareholding. Despite this, Berkshire Hathaway is satisfied with their 5.6% ownership or more in the company, and they are pleased with any slight increase in their stake.
He further added that Apple is “a better business than any we own.”Buffet has been a long admirer of Apple, once saying, “It’s a wonderful business so we own a lot of it.”
Even though Buffett’s company has been invested in Apple, it was not until 2020 he switched to an iPhone. The last we know of, Buffet was using the iPhone 11, which he was gifted.
Back in May 2016, Berkshire Hathaway made a $1 billion investment in Apple. As of March 2023, that investment had grown to $151 billion, making up 46% of the company’s $328 billion equity portfolio.
Shortly after Apple released its Q2 2023, Buffett met with Berkshire investors, further insight into why Apple is performing. He stated that he doesn’t comprehend the iPhone specifically but understands consumer behaviour, reports Yahoo Finance.
Buffett compared the iPhone to a more valuable item, like a spare vehicle, to explain consumer behaviour.
“Apple is in a position with consumers, where they’re paying maybe $1,500 bucks, or whatever it may be, for a phone,” Buffett said.
“And the same people pay $35,000 for having a second car, and [when] they have to give up a second car or give up their iPhone, they’d give up their second car,” added Buffett.
In April, Buffett made a similar statement, if they were offered $10,000 for their iPhone and promised never to buy another one again, they would refuse.
Buffett openly admires the iPhone, calling it an exceptional product unlike anything else his company owns in terms of shareholding. Despite this, Berkshire Hathaway is satisfied with their 5.6% ownership or more in the company, and they are pleased with any slight increase in their stake.
He further added that Apple is “a better business than any we own.”Buffet has been a long admirer of Apple, once saying, “It’s a wonderful business so we own a lot of it.”
Even though Buffett’s company has been invested in Apple, it was not until 2020 he switched to an iPhone. The last we know of, Buffet was using the iPhone 11, which he was gifted.
Back in May 2016, Berkshire Hathaway made a $1 billion investment in Apple. As of March 2023, that investment had grown to $151 billion, making up 46% of the company’s $328 billion equity portfolio.
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