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Warren Buffett loves Apple because of consumer addiction to the iPhone

Quartz reports:

Warren Buffett told CNBC that Berkshire Hathaway has purchased more shares of Apple than any other stock over the past year. It reflects the famed investor’s belief in Apple’s value as a consumer brand, not unlike Coca-Cola, Berkshire’s fourth-largest US stock holding. (Apple is now the second largest.)

Buffett’s take on Apple is striking because it’s seemingly not rooted directly in a view of Apple’s technology, manufacturing, or design prowess. The Berkshire CEO didn’t mention the iPhone X’s cameras or Apple’s application of voice recognition, cloud computing, or artificial intelligence.

It’s more that Buffett likes how reluctant consumers are to switch away from the iPhone to use a rival smartphone.

“Apple has an extraordinary consumer franchise,” he told CNBC. “I see how strong that ecosystem is, to an extraordinary degree. … You are very, very, very locked in, at least psychologically and mentally, to the product you are using. [The iPhone] is a very sticky product.” [Continue reading…]

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