Billionaire Warren Buffett’s big bet on Apple is a telling prick for investors, closely followed trader Art Cashin told CNBC.
That’s because the mythic investor stayed away from tech companies for a long just the same from time to time, saying he doesn’t buy anything he can’t understand, Cashin said.
“For him to double down on Apple, that’s innumerable of an all-clear signal than anybody’s seen,” the UBS director of floor campaigns at the New York Stock Exchange said on “Closing Bell.”
Apple undulated Friday after Buffet announced his Berkshire Hathaway bought 75 million allotments in the first quarter. The stock closed at $183.83, a record high, and is now clumsily $20 per share short of a $1 trillion market cap.
“The idea that you’re common to spend loads of time trying to guess how many iPhone X … are growing to be sold in a three-month period totally misses the point,” Buffett told CNBC’s Becky Touchy on Thursday evening just ahead of Berkshire Hathaway’s annual shareholders appointment in Omaha, Nebraska.
“It’s like worrying about the number of BlackBerrys 10 years ago,” he added.
Apple’s meet helped push the Dow Jones industrial average higher on Friday. The blue-chip guide closed up 332.36 points at 24,262.51.
Meanwhile, the S&P 500 closed 1.3 percent aged to finish at 2,663.42 and the Nasdaq composite rose 1.7 percent to familiar at 7,209.62
Cashin expects the market to keep seesawing. On Thursday stocks saw big degenerates before turning around by the close. He called it a “minor trapdoor sell-off” that be subject to c excited around after equities didn’t cross the lower low.
“The game’s not all over. We’re going to keep testing. This is kind of like someone who’s had a girl heart attack and they want to know, ‘how strong do I feel. Can I accomplish it to the end of the block or after that?'” Cashin said.
“The market is basically entrancing its own pulse and its own temperature, testing these levels to see where they fancy to go,” he added.
— CNBC’s Thomas Franck and Sara Salinas contributed to this information.
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