Warren Buffett buys $1bn of Apple stake

The billionaire investor Warren Buffet has bought a £700m ($1bn) stake in Apple, a holding of 9.81million shares, according to Berkshire Hathaway.

As a result, shares rose on Monday and closed trading session 3.7 percent higher at $93.88. In the past, Apple shares have fallen 30 percent over the past year. Last week Apple temporarily lost its place as the world’s most valuable company after a fall in shares pushed its total market below that of Google parent Alphabet.

Slowing of iPhone sales have put a doubt on investors to question whether the company can sustain its huge profit levels.

Mr. Buffet an architect of inexpensive stocks with predictable cash flows, has long eschewed tech company investments. Mr. Buffet is also backing a bid for the core business of Yahoo, as Mr. Buffet will provide debt financing to a consortium led by Dan Gilbert, the billionaire founder of Quicken Loans. Apple is not Berkshire Hathaway’s only technology investment, as it is also the biggest shareholder in IBM and increased its holding  to 81.2m shares worth £8.61bn ($12.3bn), in the first quarter.