Warren Buffett Doubles Apple Stake, Cheers iPhone Maker's Stickiness

Billionaire investor Warren Buffett has historically shied away from technology stocks, but he has nothing but praise for Apple Inc. AAPL.

Buffett told CNBC's Becky Quick that from the period of January 1 through January 31, the day Apple reported its earnings, Buffett personally bought 120 million shares of the iPhone maker. The reason to dish out around $20 billion on one stock? He "liked it."

Buffett shocked the investment world nearly a year ago when he reported a 9.8 million share stake in Apple.

Buffett and his investment firm Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) now own around 2.5 percent of the total amount of outstanding Apple shares. This makes Buffett one of Apple's largest shareholders and actually represents his largest holding after his beloved The Coca-Cola Co KO.

Related Link: How Much Was A Bottle Of Coke When Warren Buffett Was Born?

Buffett explained his purchase "has nothing to do" with the Federal Reserve, the presidential election or any other sideline story. The fact is Apple boasts a "sticky product" and that is an "enormously useful product" for its users.

Inspiration

Buffett explained the inspiration to buy Apple's stock comes from the author of an investment book called "Common Stocks and Uncommon Profits." The author, Philip Fisher, created the "scuttlebutt method" which prompts investors to find out as much as possible how people feel about the products they use.

Ironically enough Buffett himself doesn't use an iPhone.

Finally, Buffett argued that Apple is likely to be the first company to hit a $1 trillion valuation because the company has a "stronger position."