Apple isn’t all Warren Buffett is bullish on

This method fulfilled Buffett’s strategy of “don’t be afraid to buy the dips”. Any Berkshire Hathaway employee that can pick the Sweet 16 correctly will win $1 million a year for life.

Berkshire Hathaway has about 45 different common stocks in its portfolio, but many of them are relatively small investments.

– The stock market is “not in bubble territory”, meaning not in danger of a collapse in stock values due to excessive prices.

Image Source: The Motley Fool.

Overall, Buffett told the television network, Berkshire has spent about $20 billion on stocks since just before the USA election in November, adding that he thinks the US market is cheap with interest rates at current levels.

As he has in the past, Buffett shows both his patriotism and his modesty in his annual report.

In addition to these, there are two other stock positions to note. Morningstar’s Berkshire analyst, Gregg Warren, will once again be one of the three analysts, in addition to financial journalists and shareholders, asking questions at this year’s meeting. “And, alas, the huge fixed fees charged by all of the funds and funds-of-funds involved – fees that were totally unwarranted by performance – were such that their managers were showered with compensation over the nine years that have passed”, Buffett wrote. For the full year, operating earnings totalled US$17.58 billion, up from US$17.36 billion in 2015.

What’s changed from past year? Berkshire typically invests in what might be called “traditional American companies”, and in addition to Coca-Cola, the company also owns sizable stakes in American Airlines, Delta Air Lines, United Continental and Southwest Airlines, as well as San Francisco-based Wells Fargo, Dairy Queen and Fruit of the Loom.

The addition of a large Apple stake was not a big surprise to many investors, myself included. Nor did Buffett discuss the rationale for profitable new investments in Apple Inc. and the four largest U.S. airlines.

The airlines were more of a surprise.

Is this still a good time to get into airline investing?

Buffett says it is a mistake to mix up political decisions with investing ones.

Buffett also praised managers who run Berkshire’s businesses, name-checking several in the company’s insurance segment.

“American business – and consequently a basket of stocks – is virtually certain to be worth far more in the years ahead”, he added.

Mr Buffett told CNBC’s Becky Quick that he would not normally discuss his trading activity but he could talk about Apple “since we’re not buying it now and it’s at a price different than I would buy it now”.

Seeing as active investors charge much higher fees, argued Buffett, their aggregate results after these costs will be worse than those of the passive investors. Plus, he says lobbyists from every industry will oppose major changes.

– The Dow Jones Industrial Average, a measure of the stock market’s growth, eventually will reach 100,000 from today’s 20,837.