Warren Buffett, the master of “value investing”—meaning that he only makes long-term bets in companies that he’s familiar with (think Coca-Cola and Kraft Heinz)—is a major investor in Apple. His investment firm, Berkshire Hathaway, owns 5.5 percent of Apple. And even during Apple’s stock turmoil from late 2018 through early 2019 amid Wall Street’s doubts over the future of iPhones, Buffett remained a firm believer in the tech giant. However, the 88-year-old billionaire apparently isn’t familiar with Apple enough to fluently use an iPhone. Instead, he still rocks a vintage flip phone that’s currently available on eBay for $30. Subscribe to Observer’s Business Newsletter “Here’s my phone, incidentally. Alexander Graham Bell lent it to me and I forgot to return it,” Buffett joked when showing off his Samsung SCH-U320 during a talk at the Gatehouse’s Hands Up for Success luncheon on Thursday. But we know that Buffett does own an iPhone X. He just hasn’t set it up yet. “A fellow sent me an [iPhone] X the other day, but I’m not using it yet,” Buffett told CNBC’s Squawk Box last May. “Very nice fellow. He even explained it. I think he pretended he was writing to a three-year-old child. He wrote me this very nice letter and explained what to do with it—how it wouldn’t bite me or anything like that. I’m kind of screwing up my courage here, and one of these days, I’ll move.” Buffett’s right-hand man, Berkshire Hathaway Vice Chairman Charlie Munger, also doesn’t use an iPhone, he revealed in the same CNBC interview. It’s not crazy to think that the “nice fellow” Buffet mentioned could be Apple CEO Tim Cook, since he has said that he’d be happy to help Buffett set up a new iPhone. “I told him I’ll personally come out to Omaha and do tech support for him,” Cook said in a Bloomberg TV interview last year. Buffett has said that he invested in Apple not for its short-term financial situation or specific products, but because of its “position in consumers’ minds” and the tech “ecosystem” it has created. Although he was uncertain about Apple’s streaming service and paid news content strategy announced earlier this week, Buffett figures that, for its size, Apple can “afford a mistake or two” when entering into new markets, he said on Thursday. Below is the full video of Buffett’s talk at Thursday’s luncheon.<doc-sep>Warren Buffett shared his thoughts on Apple following its big event on Monday in interviews with Yahoo Finance and CNBC. He said Apple is a long-term investment, adding that: "If you have to closely follow a company, you shouldn't own it." Buffett's Berkshire Hathaway owns a 5.4% stake in Apple, but he famously doesn't use an iPhone — or any smartphone for that matter. He uses a flip phone instead. Apple shares fell by as much as 2.2% on March 25 following its star-studded event, during which it unveiled new subscription services for TV, gaming, and news. But that doesn't concern renowned investor and Berkshire Hathaway CEO Warren Buffett. When speaking with Yahoo Finance editor-in-chief Andy Serwer on Monday, Buffett said that "if you have to closely follow a company, you shouldn't own it." That's because Buffett sees Apple as a long-term investment. "If you owned the best auto dealership in town, the best brand, you wouldn't drop by everyday and say you know, 'How many people have come in today?"' he said to Yahoo Finance. "You buy it knowing there's 365 days a year, and you're going to own it for 20 years, so that's 7,300 days, and things are going to be different from day to day and year to year." Buffett's Berkshire Hathaway owns a 5.4% stake in Apple, but he famously doesn't use the company's biggest product —the iPhone. Buffett uses a Samsung flip phone, which he showcased on CNBC's Squawk Box last year. It's unclear exactly what type of phone Buffett uses, but CNBC's Fred Imbert pointed out on Twitter that it looks a lot like the Samsung Haven. "Tim Cook sent me a Christmas card again this year saying he's going to sell me an iPhone this year," Buffett said to CNBC. "He keeps sending me these reminders every Christmas." Buffett himself is evidence that the smartphone market isn't saturated just yet. "When I actually buy it, it's all over, folks," he said to CNBC in reference to the iPhone. "The last person has bought it." Apple took the wraps off its long-rumored TV service on Monday, Apple TV Plus, which provides access to a slate of high-budget Apple original productions. The company is working with talent including Oprah Winfrey, Reese Witherspoon, Jennifer Aniston, Steve Carell, Steven Spielberg, and Jason Momoa among others, all of which appeared at the event to discuss their upcoming projects that will be part of the service. Apple also debuted a redesigned version of the Apple TV app, an Apple Arcade gaming service, and a paid tier of Apple News that grants access to content from magazines, newspapers, and digital outlets. But the event left Wall Street with several unanswered questions, particularly around the pricing for Apple TV Plus and Apple Arcade. The event was being closely watched as a major effort by Apple to bolster revenue from its services business as it grapples with slowing iPhone sales. "As far as this event is concerned, I think there was an expectation that we would get answers to a number of things we didn't get answers to," Angelo Zino, an equity analyst at CFRA, told Business Insider sister site Markets Insider. Even if Apple's TV service doesn't turn out to be a blockbuster hit, the company can afford to "make a mistake or two," Buffett recently told CNBC. "I'd love to see them succeed, but that's a company that can afford to make a mistake or two," he said. "You don't want to buy stock in the company that has to do everything right."<doc-sep>When a top investor in Apple stock says he does not use an iPhone, it is bound to be a big surprise! That is what billionaire investor Warren Buffett did when he revealed the secret that he is not using an iPhone and is too happy with his $20 flip phone. Buffett’s Berkshire Hathaway owns 5.5 percent of Apple stock and iPhone accounts for the lion share of the company's revenue. The billionaire's spartan $20 flip phone is a Samsung SCH-U320 that is selling at 20 to 30 dollars on eBay. According to Forbe’s billionaire, he lacks hands-on experience with the iPhone although he is good at using an iPad to do research and stock price updates. Buffett also showed off his flip phone during a talk at The Gatehouse's Hands Up for Success luncheon. “Here's my phone, incidentally. Alexander Graham Bell lent it to me and I forgot to return it,” Buffett joked. Buffett also said he was gifted an iPhone X but he has not set it up yet. "A fellow sent me a '10' the other day, but I'm not using it yet," Buffett said. The investor has acknowledged that his interest in Apple shares was not driven by its lure of finances, but he likes the strong brand equity and ecosystem of Apple. That is why Buffett’s reaction to Apple’s recent foray into entertainment was considered significant. He said Apple can afford a “mistake or two” while commenting on its entry into new markets including entertainment. Buffett counsels discretion on buying new IPOs Meanwhile, Warren Buffett cautioned regular investors against buying hot offerings in a "hot market." Case in point was the likes of highly chased Lyft IPO and a plethora of upcoming offerings from Silicon Valley's startups. Noting that he has never bought an IPO after the 1950s, Buffett recalled buying Ford Motor's share offering when it was making a debut in the market. Many deal offerings are expected this year from Silicon Valley's unicorns. In the tech industry, unicorn refers to a company that has a valuation of $1 billion-plus even before it goes public. Photo: Photo by Eric Francis/Getty Images The billionaire investor's advice to regular investors is that “buying new offerings during hot periods in the market ... I don't think it's anything the average person should think about at all.” Buffett told a CNBC anchor that his view on the matter may also inhibit people from getting a slice of successful companies like a young Amazon or Uber. But Buffett said his counsel on the matter is --"be safe than sorry" when it comes to investing in untested companies. “You can go around making dumb bets and win. ... It's not something you want to take as a lifetime policy,” he quipped.<doc-sep>
Warren Buffett doesn't use an iPhone, despite the fact that the firm he runs, Berkshire Hathaway, owns 5.5% of Apple. Instead, he uses a $20 flip phone: the Samsung SCH-U320, which is currently selling for between $20 and $30 on Ebay. Although Apple is Berkshire's largest investment, its founder and leader lacks hands-on experience with the product that accounts for the majority of the company's revenue. However, Buffett does use an iPad to check stock prices and do research. Buffett showed off his vintage technology during a during a talk Thursday at The Gatehouse's Hands Up for Success luncheon. "Here's my phone, incidentally. Alexander Graham Bell lent it to me and I forgot to return it," Buffett joked. On Thursday, Buffett said that Apple can "afford a mistake or two" when breaking into new markets, including entertainment. Buffett has previously said that his interest in Apple shares is not because of the company's short-term finances, but because he believes it has a strong brand and ecosystem. Buffett's had his older phone for a while, and he even has an iPhone X — he just hasn't set it up yet. "A fellow sent me a '10' the other day, but I'm not using it yet," Buffett said. "Very nice fellow. He even explained it. I think he pretended he was writing to a three-year-old child. He wrote me this very nice letter and explained what to do with it — how it wouldn't bite me or anything like that. I'm kind of screwing up my courage here and one of these days, I'll move." Apple CEO Tim Cook has said he would fly to Omaha to help Buffett set a new iPhone up. "I told him I'll personally come out to Omaha and do tech support for him," Cook said in an interview last year. Subscribe to CNBC on YouTube. Clarification: This report has been updated to reflect that a company operating under the name Berkshire Hathaway existed prior to being taken over by Warren Buffett.