Warren Buffett says he's willing to buy more shares of Apple -- already the largest equity investment at his company, Berkshire Hathaway -- at the right price. Buffett's sidekick, Vice Chairman Charlie Munger, says he wished Berkshire owned more of Apple's stock than it already does. (The stake amounts to about 5%.)
Why would Buffett and Munger make those comments to CNBC more than two years after Berkshire's purchases started? Here's one explanation: Apple's P/E ratio shows it's still a cheap stock, relative to the S&P 500 at least.
Apple traded at a P/E discount of about 40% when the buying got under way. While the gap is narrower these days, the percentage remains in double digits: 13% as of Friday's close. Apple has been cheaper than the S&P 500 by this indicator since October 2012, except for Thanksgiving week 2014.
Source: Bloomberg Pro Terminal
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