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Buffett buys a bushel of Apple shares

The Sage of Omaha raised his stake in Apple by more than a third after the tech giant's shares fell
August 16, 2016

Warren Buffett can't resist a bargain. The investing guru raised his stake in Apple (US:AAPL) by about 36 per cent to $1.5bn (£1.16bn) via his Berkshire Hathaway (BRK.A) conglomerate in the three months to 30 June. Apple's shares slid more than a tenth over the same period, but have rallied in recent weeks.

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Buffett will have cheered Apple's recent third-quarter results, which beat market expectations for both revenue and earnings. Moreover, the launch of the iPhone 7 in September should revitalise sales of its flagship smartphone. Broker Drexel Hamilton expects adjusted operating profits of $59.5bn in the year to September, giving EPS of $8.22, rising to $65.1bn and $9.25 in FY2017 (FY2015: $71.2bn and $9.22).