In the latest revelation that sent Apple’s share prices spiking on Friday, Warren Buffett’s Berkshire Hathaway Inc bought 75 million additional Apple Inc shares in the first three months of the year, Reuters reported citing CEO Warren Buffett’s conversation with CNBC. The latest deal has surprised many since Warren Buffett has traditionally been known to keep safe distance from companies associated with the technology sector. Nevertheless, what prompted the ‘Oracle of Omaha’ in making such a large investment in the most valued company in the US is an interesting story. Apple shares rose as much as 3.8 percent to a record $183.65 on Friday. That valued Apple at about $900 billion. The share is up about 8 percent so far this year.

Buffett’s investment in Apple

Despite his Silicon Valley pedigree, Warren Buffett has praised Apple Chief Executive Tim Cook and has been heard saying that he views Apple Inc more as a consumer company, Reuters reported. But, the real reason lies somewhere else. Warren Buffett’s company has not made a major acquisition in over last two years. Even in his annual letter, Buffett had said that he wants one or more “huge” non-insurance acquisitions to help him reduce Berkshire’s $116 billion in cash and equivalents.

Initial investment in Apple

The first investment in Apple Inc by company was  small and is known to be made by one of Warren Buffett’s investment deputies. However, the latest share purchase has grown to sturdy 240.3 million shares worth $42.5 billion. “If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States,” CNBC quoted Buffett as saying. Warren Buffett recently sold out of an unsuccessful investment in IBM at the same time he was buying stocks in Apple Inc.