Mr Buffett, widely known as the world's most successful 'value' investor (buying companies when they're cheap) has bet heavily on Apple this year. Sounds like a great opportunity, right? Well, opposite more likely to be true. Most investors should beware the 42% rise in apple stock this last 12-18 months and watch out for the time old mistake of buying high (based on sentiment caused by press coverage like this) and ultimately selling low.
Warren Buffett has been buying shares of Apple hand over fist. Buffett's Berkshire Hathaway has almost quadrupled its stake in Apple. As of year-end, it owned some 57 million shares, up from 15 million shares in the third quarter. That stake was worth approximately $6.6 billion as of December 31. Shares of Apple have climbed 42% in the last twelve months and notched a new all-time record on Tuesday in renewed investor confidence in the iPhone maker. If Buffett hasn't touched his position since the end of last year, it's now worth a whopping $7.7 billion. The billionaire investor first began scooping up the stock last year when the market was punishing it for a slowdown in iPhone sales and declining revenue. He started with 9.8 million shares worth $1.1 billion and has since doubled down on his bet.