Here is why Warren Buffett believes the iPhone is 'enormously underpriced'

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Here is why Warren Buffett believes the iPhone is 'enormously underpriced'

According to a new report from CNBC, Berkshire has bought "just a little" more Apple stock since June 30, when it had a 252 million share stake now worth more than $56 billion United States dollars. Buffett has traditionally invested in companies from sectors such as consumer, energy and insurance. With the help of deputies Todd Combs and Ted Weschler, the billionaire investor also oversees a $180 billion stock portfolio that includes stakes in Wells Fargo. Rather than balk at paying $1,000 for the device, he said people should put the cost into perspective and appreciate that the iPhone is so important that it surpasses the value of many more expensive objects. It has been a busy year for Combs, who has also been heading Berkshire's efforts to start a healthcare joint venture with Amazon.com and JPMorgan Chase & Co. In June, the group named Atul Gawande to lead the initiative, which will be based in Boston. Asked if he had added to his stake since the filing, Buffett said the firm had "bought just a little".

Gawande is in the process of adding staff now. "Not very many people, but he will be hiring people". "It's considerably more attractive than fixed-income securities".

Buffett was in New York Thursday on his 88th birthday to dine with the person who paid $3.3 million in a charity auction for a private lunch with the investor. She said Buffett was not involved in the transaction. The victor paid US$3.3 million for the opportunity to bring guests to eat with Buffett at Smith & Wollensky.

And if you have a stock "trading like insane", minutes after you misspeak "you say I misspoke when I said 'funding secured, ' I meant to say I really think I can get funding, something of the sort", Buffett stated. Berkshire's board opened up another pathway for capital deployment in July, when it gave Buffett and Vice Chairman Charles Munger more leeway to repurchase shares.

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