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During the May 2018 Berkshire Hathaway shareholders meeting in Omaha, the Oracle Warren Buffett told investors “from our standpoint we would love to see Apple go down in price.” For a big shareholder like Buffett and Berkshire, rooting for an Apple price decline may seem counter-intuitive — but for a value investor like Buffett/Berkshire it’s exactly right. Buffett wants to buy stocks at a bargain, and with Apple flying so high (reaching a $1.1 trillion valuation in October) he’s been forced to buy it higher than he’d like. Now with Apple’s revelation that the China market for iPhones has been soft, Buffett gets his wish big time. Apple shares dropped more than 7% on the news, and they were already falling off that $1.1 trillion October peak.)
Yes, that means that the value of Buffett’s Apple holdings takes a hit in the short term. But since he’s not selling it doesn’t matter. What Buffett asked for back in May is the opportunity to buy Apple cheaper. Today he’s got that opportunity.
