Buffett likes companies with long-term strategies. “Nobody buys a farm based on whether it’s going to rain next year,” he said on CNBC’s “Squawk Box.” “They think it’s a good investment over 10 or 20 years.” That’s why he doesn’t worry about quarterly iPhone sales, even if Apple misses, because he’s more interested in Apple’s growth over the next decade.
Also, Apple’s no longer just an iPhone company. The company’s wearables business, which didn’t even exist several years ago, is now the size of a Fortune 300 business and has no real competition. Its “services” business, which includes the App Store, iCloud, Apple Music and more, is also growing at a rapid rate.
“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. [IPhone] is a very sticky product,” Buffett said in February of the iPhone and Apple’s ecosystem.
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