Apple Inc. (AAPL): Why Isn’t Buffett Buying?

A strong brand is one of Buffett’s favorite moats. Fruit of the Loom, Dairy Queen, See’s Candies, and Helzberg Diamonds are just a few of the companies Buffett owns that could be overtaken by a thousand different competitors if it weren’t for their strong brands.

In tech, Apple Inc. (NASDAQ:AAPL) has a superior brand, and there are only a few companies that could conceivably compete with Apple in PCs, smartphones, and tablets. We’re getting to the point where scale matters, and so does the ecosystem of apps you’re able to build. Google Inc (NASDAQ:GOOG) has been able to build an ecosystem to rival Apple, but companies such as Palm and Research In Motion Ltd (NASDAQ:BBRY) have failed trying to keep up. Even the mighty Microsoft Corporation (NASDAQ:MSFT) is struggling to keep up with Apple, and one reason is that Apple’s brand and ecosystem combine to form an impenetrable force.

Foolish bottom line
I think Apple Inc. (NASDAQ:AAPL) stock is a perfect pick for Warren Buffett or even the two proteges to whom he’s given billions of dollars to manage. The brand, large competitive moat, and great value are too good to pass up. The market is very fearful that Apple has lost its magic touch, which is when Warren Buffett should be greedy and scoop up as much Apple stock as he can.

The article Why Isn’t Warren Buffett Buying Apple Stock? originally appeared on Fool.com.

Fool contributor Travis Hoium owns shares of Apple and Microsoft. The Motley Fool recommends Apple, The Coca-Cola Company (NYSE:KO), and Google Inc (NASDAQ:GOOG) and owns shares of Apple, Google, and Microsoft.

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