Warren Buffett is a legendary investor and many of his moves make sense. What about his position Apple (NASDAQ: AAPL)? The price of Apple shares increased by a quarter in the last year (and more than three times in five years).

In recent years, billions of pounds of Apple shares have been discharged – but also hung up to billions of pounds.

If he thinks that Apple is full, why didn’t he sell it? If he thinks that the price is good enough to justify that Apple is still his largest farm, why sell at all?

I don’t know, to be sincere: only Buffett. Maybe for tax reasons. Maybe Buffett simply wants to maintain a variety of portfolio after the price of Apple shares.

But although I can’t read Omaha’s mind, the violent cost of the backup of a technology company forced me to my head.

Apple can be close to the perfect business

In a sense, Apple has many elements that you can look for in a brilliant investment.

That is why I kept it in the past and I will gladly have shares again if I could buy them at an attractive price. Finally, a brilliant investment requires (paraphrasing buffett) buying at a great company at an attractive price.

The company’s business area is extensive. Sure, sells phones and computers, tablets and watches. But he also earns a lot of money for selling services. It also has a developing operation of financial services.

Thanks to the mighty brand, installed user base, reserved technology and problems associated with switching to rivals, Apple has sedate price power.

Last year, he recorded a net income of USD 94 billion. This is not only a huge sum, but corresponds to a net profit margin of 24%. This is what the price of prices can do!

Here’s why I’m not buying now

These wonderful economics support explain why the price of Apple shares has increased in the last five years (and outside of it: its results have been perfect for several decades).

But it also means that I have to ask because someone who would be willing to have Apple shares: is the price that I have to pay for them today is reasonable?

After all, as an investor, I try to buy shares for less (preferably much less) than I think that it will eventually turn out to be worth.

But Apple, with 3.2 -TRN market capitalization, currently has an share price indicator to profit 34.

For me it is too high to justify, so I do not plan to buy Apple again at the current price.

Buffett talks about an investor who has “safety margin“And I do not see it at the current price. Finally, the company faces the growing competition from inexpensive rivals.

I am also not convinced that the money that flows in to their streaming activities will probably produce something like a return on capital that was achieved in other parts of his extensive empire.