Apple & Buffett: The Discount Dance of the Quarter
A Quick Snapshot
- Apple’s buying spree – spent $23 billion on its own shares at an average of $171.48.
- Buffett’s haul – added 75 million Apple shares, worth roughly $12–13 billion.
- Combined take‑out – together they snapped up almost one‑in‑ten shares traded that quarter.
Why it’s All About the Timing
Apple’s “cash monster” of $252 billion rose from overseas, spilling into the U.S. market just as the S&P 500 dipped 10 % between Jan 26 and Feb 8. That dip sent a “bull market might be in a tailspin” whisper around Wall Street, making it easier for big players to lunch a deal.
The Apple stock slipped even faster than the broader market, dropping over 13 % from its record‑high. Yet both Apple and Buffett acted like cool-headed shopkeepers, swinging a “clean‑up” onto the board before the price re‑fired.
Discounts & VWAPs: The Numbers Game
- At its March low (Feb 8) the share hit $155.15 – almost 10 % below its 60‑day VWAP.
- That’s big: the last time such a discount appeared was in May 2016, when Buffett first bought Apple.
- Fast forward to Friday’s close at $183.83. Apple is now trading at a nearly 7 % premium over the 60‑day VWAP of $172.11.
More Than Just Numbers – A Culture of Confidence
Buffett, famously dubbed the “bargain hunter,” sees each discount as a golden ticket. In the first quarter alone, his stake jumped to 240.3 million shares, worth $42.5 billion.
Apple, on the other hand, is on a relentless buy‑back treadmill – a $210 billion program in 2014 that reached its biggest quarterly haul. The next paso? Another $100 billion of “cashing out” to trim that mountain of cash.
The Moral of the Story
When markets tumble, opportunistic giants swoop in. Apple and Buffett give us a reminder that with good timing, a solid strategy, and a hunger for bargains, even the biggest players can find their “cheapest” second‑hand stock, and then close the deal to the benefit of everyone.
