Billionaire investor Warren Buffett earned a reputation of avoiding technology stocks. On Monday, he told CNBC's Becky Quick that Apple Inc. (NASDAQ: AAPL) is the third-largest business in Berkshire Hathaway Inc.'s (NYSE: BRK-A)(NYSE: BRK-B) portfolio.
Buffett and his Berkshire own more than 5% of Apple and the iPhone maker is "probably the best business I know in the world," he said. Aside from Buffett's exposure to insurance and railroad, Apple is the "biggest commitment" in Berkshire's portfolio.
Buffett first announced Berkshire Hathaway was buying Apple stock back in February of 2017.
Why It's Important For Apple, Buffett
Buffett never considered Apple to be a pure tech company, rather it's a consumer products company that sells technology. Similarly, a smartphone is a consumer product that can be used in many different ways.
The "Oracle of Omaha" also said his outdated flip phone is "permanently gone" and has been replaced with an iPhone. To mark the occasion, he crushed his old flip phone with his foot.
"You are looking at an 89-year-old guy that is barely getting with it." he joked.
Despite a large stake, Buffett said he has no additional insight into Apple's concerning guidance outlook. He hasn't called Apple CEO Tim Cook in two or three years and they only meet each other at corporate events.
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