American investor, industrialist and philanthropist Warren Buffet isn’t keen on buying AAPL because, as he put it, he cannot predict what the fundamentals will be like down the road, Bloomberg reports. The Apple stock is harder to predict than Coca-Cola’s, he says:
We held very few in the past and we’re likely to hold very few in the future. Coca-Cola is very easy for me to come to a conclusion as to what it will look like economically in five or 10 years, and it’s not easy for me to come to a conclusion about Apple.
You’d be forgiven for expecting a more forward-looking approach to AAPL from the chairman of Berkshire Hathaway Inc. and the third richest guy on the planet, but it’s not that surprising, really. Here are my two cents.
Even though Apple shares are on the rise, they are volatile to a number of factors and tiny little things that are out of Apple’s control, like the well-being of its chief executive Steve Jobs or the recent crisis in Japan that has hampered international iPad 2 roll out.
Let’s not forget the fact that Apple hasn’t been paying a cash dividend since 1995. As a result, regular folks like you and me looking to invest in AAPL and reap the benefits of steady dividends could be disappointed because the only people profiting from APPL are short sellers anyway.