Investor lesson: Buffett’s bite of Apple

Former associate editor and columnist with the Australian Financial Review
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Just when thousands of Warren Buffett’s fans were celebrating his success in proving how a conservative approach can prove a winner, the Oracle of Omaha has shown that he can surprise the markets with a big share play.

Back in February, Buffett’s Berkshire Hathaway unveiled a US$17 billion purchase of Apple shares – more than 2.5% of the tech giant’s capital – effectively doubling his stake in the iPhone group since this time a year ago.

It’s a reminder that you can’t underestimate the tactics of such a canny investor: he has taken a large bet on an individual stock – and the sort of stock that he has shied away from for most of its listed life.

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