The Oracle of Omaha is adding to his already large stake in Apple Inc.<\/p>\n
Warren Buffett, 88, likes the technology giant because of its devoted customers, and has built up his stake in the company by \u201cjust a little\u201d since his last regulatory filing, he said Thursday in an interview with CNBC. The Berkshire Hathaway Inc. chairman and chief executive officer said his firm has also bought back some of its own stock recently.<\/p>\n
\u201cThey\u2019ve got to keep having the product that this huge clientele regards as indispensable,\u201d Buffett said of Apple.<\/p>\n
For customers, \u201cthe iPhone is enormously underpriced\u201d compared with the utility it offers, he said.<\/p>\n
Berkshire has been piling more money into Apple, increasing that stake to 252 million shares as of June 30. The investment is worth more than $50 billion and makes Berkshire the third-biggest shareholder in Cupertino, California-based Apple, with a more-than 5% stake, according to data compiled by Bloomberg.<\/p>\n
Buffett has expanded his company into a conglomerate with a $520 billion market cap and footholds in the railroad business, insurance industry and energy sector. With the help of deputies Todd Combs and Ted Weschler, the billionaire investor also oversees a $180 billion stock portfolio that includes stakes in Wells Fargo & Co.<\/p>\n
Earlier this year, Buffett teamed up with JPMorgan Chase & Co.\u2019s Jamie Dimon and Amazon.com Inc.\u2019s Jeff Bezos to create a venture that\u2019s aiming to change how health care is provided to the three companies\u2019 employees. In June, the group named Atul Gawande to lead the initiative, which will be based in Boston.<\/p>\n
While exact details on the venture are scant, Buffett has previously said that the goal is to go beyond just squeezing middlemen and actually lower costs and deliver better care.<\/p>\n
Gawande is in the process of adding staff now.<\/p>\n
\u201cHe\u2019s hiring people,\u201d Buffett said in a subsequent interview with Bloomberg Television Thursday. \u201cNot very many people, but he will be hiring people.\u201d<\/p>\n
The initiative won\u2019t succeed if it\u2019s just a cost-cutting measure, Buffett said. \u201cWe\u2019d like to be in a hurry but we\u2019re not going to try and do something faster than it can be done,\u201d he said.<\/p>\n
Buffett was in New York Thursday to dine with the winner of his annual lunch auction, which benefits San Francisco-based charity Glide. The winner paid $3.3 million for the opportunity to bring guests to eat with Buffett at Smith & Wollensky.<\/p>\n