— This is the script of CNBC's news report for China's CCTV on May 7, Monday.
In the first quarter of this year, U.S. stock violated severely, especially the tech stocks experienced large correction. The Buffett's saying comes true" Be Fearful When Others Are Greedy and Greedy When Others Are Fearful", then the first quarter is a greedy one for Buffett. On weekend that is also the Berkshire Hathaway's annual meeting time, he told CNBC that he bottom finished the U.S. stocks.
"WE BOUGHT MORE STOCKS BY A CONSIDERABLE MARGIN THAN WE SOLD IN THE FIRST QUARTER. WHICH IS USUALLY TRUE NOT BY A CONSIDERABLE MARGIN, BUT WE'RE USUALLY A BUYER OF STOCKS AND IN FIRST QUARTER, THE APPLE ALONE, I MEAN, YOU'D FIGURE OUT, WE'RE TALKING 12 OR 13 BILLION DOLLARS OR SOME NUMBER LIKE THAT AND SO IT BROUGHT DOWN OUR CASH POSITION MODERATELY"
Berkshire Hathaway holds 75 million more Apple stocks in the first quarter, boosting Apple's stock jumped 3.92% at the closing session in last Friday and hitting a new peak.
Meanwhile, Apple's stock increased 13.25% in the last week which is the best performance since 2011, making Apple be the world's largest company by market value that is $922.8 billion.
At present, Buffett holds Apple's stocks, which have risen to 5%.
"IT IS AN UNBELIEAVBLE COMPANY. IF YOU LOOK AT APPLE I THINK IT EARNS ALMOST TWICE AS MUCH AS THE SECOND MOST PROFITABLE COMPANY IN THE UNITED STATES. IT'S A WIDE WIDE GAP. IT'S AN AMAZING BUSINESS. I MEAN THERE'S A COMPANY THAT'S - WHATEVER THE EARNINGS ARE, 60 BILLION OR WHATEVER - AND YOU CAN PUT ALL THEIR PRODUCTS ON A DINING ROOM TABLE. I MEAN, THAT IS NOT THE WAY IT USED TO BE IN THIS COUNTRY."
The US tech stocks firmed amid the considerable increase in Apple's stock.
A significant rise was seen in the tech stocks in last Friday, and NASDAQ composite index – weighted tech stock was up 1.71%
But the analysts told CNBC that Buffett bottom finished the Apple's stock boosted the market, driving the tech stocks continue to rise in the coming period.
The holdings of tech stocks make many curious that what are Buffett's views to the leaders in Silicon Valley? It was a highlight on the annual meeting that Buffett holds opposite views to Bezos of Amazon and Mush of Tesla
Buffet never hides his appreciation to Bezos and he named Bezos "the most outstanding business talent in this century", on this meeting, Buffet said, it was a mistake that he didn't invest on Amazon and Google, these 2 tech companies with dominant position. But Buffet and Musk have criticized each other for many times regarding the "Moat".
As we know, Buffet is known to hold the "Moat" theory. That means a company should have strong brand or business model that can set barrier to competitors. But Musk said in the earnings call that this concept (Moat) is inferior and old; innovation is the key to keep competitiveness. Buffett against Must that the tech has never destroyed "moat" of each industry, adding that the acceleration of tech make many companies be vulnerable to competitiveness, while that doesn't mean we can deny the "Moat" completely. And tech can't solve all problems; it may be just a child's dream.
Buffett admitted that Musk does do a good job in certain area, but he doesn't believe that Musk will defeat Berkshire Hathaway on candy area.
Musk posted twitter soon after Buffett's comments, saying he will also establish a wonderful candy company. And he added another twitter- "I'm very, very serious"
Whatever Buffet will continue to invest on "Moat" business and whatever Musk enter the candy market, What we know is that Buffett is still upbeat the US stock.
And markets believe that Buffett may keep the holdings of Apple's stock. We will keep an eye on this issue.