NEW YORK, NEW YORK – SEPTEMBER 20: Apple CEO Tim Cook greets customers during the grand reopening of Apple’s flagship store, Apple Fifth Avenue on September 20, 2019 in New York City.
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Apple shares closed up 5.39% on Monday at a price of $ 127.79, topping the NASDAQ, which was only up 3.01%. It was Apple’s biggest day since October 12, when shares rose 6.35%.
The bump came after Berkshire Hathaway chairman and CEO Warren Buffett said in his annual letter to investors released over the weekend that his investment firm owns 5.4% of Apple’s shares, making it makes Berkshire’s third most valuable asset. The letter praised Apple’s approach to dividends and share buybacks.
“Berkshire’s investment in Apple vividly illustrates the power of buyouts,” Buffett wrote.
Buffett and Berkshire Hathaway started buying Apple in 2016 after years of avoiding tech stocks. Apple’s success last year more than made up for the damage the pandemic caused to investor’s rail and insurance businesses.
Buffett said Berkshire Hathaway, like Apple, was planning to buy back its shares.
Apple’s ramp-up also comes after the company confirmed Monday that all 270 U.S. retail stores are open for business, although some remain by appointment only.
Monday marked the first time all U.S. stores have been open since Apple began closing them in response to the Covid-19 pandemic last spring.
Apple has reopened and closed stores several times over the past year in response to local Covid-19 conditions, and Monday’s milestone suggests Apple’s retail business is starting to return to normal.