Warren Buffett Tim Cook praise: Why Warren Buffett says he ‘didn’t have to do a damn thing’ as Berkshire’s $35 billion Apple bet skyrocketed to $185 billion under Tim Cook
Warren Buffett Reflects on Apple Bet at Berkshire Meeting
He looked at the period between 2016 and 2018, when Berkshire invested about $35 billion in Apple. At the time, Cook had already been CEO for several years, but Buffett noted that he was little known among investors, especially compared to Steve Jobs, whom he replaced in 2011, according to a report.
How Did Berkshire’s $35 Billion Apple Investment Begin?
For Buffett, investing wasn’t just about the business, it was also about the person running it. He described it as effectively transferring more than 10% of Berkshire’s resources to a “then little-known person,” Business Insider reported.
He stated that the results were significant. Stating that this $35 billion investment increased to approximately $185 billion before taxes, including dividends and earnings, Buffett added, “And I didn’t have to do anything,” as quoted in the report.
Buffett’s Bet Was Not Just on Apple but on Tim Cook
“When we made our investment and we transferred 10% of Berkshire’s resources, we were transferring that to Tim, and I say he made it $185 billion or something pre-tax,” he said, adding that he “won’t bother comparing his own record to that,” according to Business Insider.
Why Does Buffett Let Apple Manage His Money?
According to Business Insider, Buffett stated that Berkshire handed over management of its money to Apple to make it “look good” and that this was his “preferred way of working.”
Apple’s Massive Growth Under Tim Cook Management
He acknowledged the extent of Cook’s oversight, as Apple’s market value rose from about $350 billion to $4.1 trillion during his time as CEO.
Why Apple Remains Berkshire’s Largest Conglomerate
Although Berkshire has reduced its holdings in recent years, Apple remains the largest holding, an indication of continued confidence.
Why Does Buffett Ask Tim Cook to Say Hi?
Cook, who will step down as Apple’s CEO, and Buffett, who recently celebrated Apple’s 50th anniversary, turned this moment into recognition. Cook even stated that he “made a legend” when he took over as CEO from Apple co-founder Steve Jobs in late 2011, and that “only a minority of American investors had heard of Cook”. Since taking over as Apple’s CEO, Cook has helped Apple scale iPhone production and distribution, improve its global supply chain, and also expand into China.
“So I think it’s appropriate for Tim to say hi and for our shareholders to thank him,” Buffett later said, as quoted by Business Insider.
FAQ
What did Warren Buffett say about Tim Cook?
He credited Cook with making Berkshire’s Apple investment a huge success.
How much did Berkshire invest in Apple?
Approximately $35 billion between 2016 and 2018.
