Warren Buffett takes $1bn stake in Apple

Warren Buffett's Berkshire Hathaway disclosed a stake in Apple, betting that the technology company will rebound after a slump driven by a slowdown in iPhone sales.

Berkshire held 9.81 million Apple shares as of March 31st, according to a regulatory filing Monday from the billionaire’s Omaha, Nebraska-based company. The holding was valued at $1.07 billion at the end of the first quarter.

Apple is pivoting toward services and exploring new technologies such as self-driving cars to reduce reliance on the iPhone. Sales of the product dropped in the first quarter of this year, ending more than a decade of uninterrupted growth.

While Buffett has typically shunned technology investments, his deputies Todd Combs and Ted Weschler have been building their own portfolios in recent years. Their holdings are typically $1 billion or less per company, while Buffett makes larger wagers.

Apple rose 2.2 per cent to $92.50 in early trading at 7:53 a.m. in New York after Berkshire disclosed its holding. The company had slumped 14 per cent this year through Friday.