NEW YORK, NEW YORK – SEPTEMBER 20: Apple CEO Tim Cook greets customers at the reopening of Apple’s flagship retail store, Apple Fifth Avenue on September 20, 2019 in New York City.
Taylor Hill | WireImage | Getty Images
Apple shares closed Monday 5.39% to $ 127.79, outperforming NASDAQ, which was 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 this weekend that his investment firm owns 5.4% of Apple stock, making it Berkshire’s third largest asset. The letter praised Apple’s approach to dividends and share buybacks.
“Berkshire’s investment in Apple illustrates the power of buybacks,” wrote Buffett.
Buffett and Berkshire Hathaway started buying Apple in 2016 after years of ditching tech stocks. Apple’s success last year largely offset the damage caused by the pandemic in the investor’s rail and insurance businesses.
Like Apple, Berkshire Hathaway plans to buy back its shares, according to Buffett.
Apple’s rise also comes after the company confirmed on Monday that all 270 U.S. retail stores are open for business, although some remain by appointment only.
On Monday, all US stores opened for the first time since Apple closed them in response to the Covid-19 pandemic last spring.
Apple reopened and closed its stores several times over the past year due to local Covid-19 conditions. Monday’s milestone suggests that Apple’s retail business is back to normal.