"They love it." Last month Apple sold 78 million iPhones, nearly 1 million more than analysts were looking for. Revenue for the full year rose by 6% to $223.6 billion.
Buffett also explained about the advantages of low-priced index funds.
He says he will then judge him on "if the economy does well, which I expect it to do, how wide the participation in a better economy extends". Vanguard and Blackrock, for instance, Apple's No. 1 and No. 2 largest outside investors, mostly own the stock due to their index funds. "The problem simply is that the great majority of managers who attempt to over-perform will fail".
Warren Buffett is famously a very long-term investors. Buffett bought his most recent stake between January 1 and January 31-the day Apple reported that its sales rose $2.5 billion, or 3%, in the last three months of 2016, which was higher than expected.
"What I do know is that when I take a dozen kids to Dairy Queen, which I do every Sunday, they're all on their iPhones", Buffett said.
Warren Buffet praised "ambitious immigrants" and reiterated his stance that America's babies are "the luckiest crop in history" in his annual letter to shareholders. "I believe ... that none of the mega-rich individuals, institutions or pension funds has followed that same advice when I've given it to them", Buffett wrote in his annual letter to Berkshire shareholders, which was released Saturday. Full year 2016 Insurance-investment operating earnings were US$3.67 billion compared to US$3.73 billion in 2015. Operating earnings per Class A equivalent share fell to $2,665 from $2,843 in the previous year period.
Berkshire, which has stakes in Kraft Heinz, Coca-Cola and a number of other companies, and recently invested in Apple, has benefited from the Wall Street rally after Trump's election.
Mr Buffett's comments came as his firm Berkshire Hathaway, which owns dozens of United States stocks including Apple, Coca-Cola and the four biggest United States airlines, reported a 15% rise in fourth-quarter profits to $6.3bn (£5bn). And despite being famous for his buy-and-hold investment style, Buffett and his team did quite a bit of buying and selling stocks in 2016.
Joking aside, Buffett has warmed up to investing in big technology companies lately, even though he is famous for having shunned them in the past.
Buffett predicted that Apple would beat his own conglomerate to become a trillion dollar company, and jokingly offered to swap with Tim Cook.