Apple's  (AAPL) - Get Report brand loyalty and reasonable valuation is what convinced billionaire investor and Bershire Hathaway  (BRK.A) - Get Report (BRK.B) - Get Report  Chairman and CEO Warren Buffett to invest in the company, Buffett told CNBC Monday. 

"The shares when we bought them at least were much more reasonable in relation to current earnings," Buffett said. 

The Oracle of Omaha is bullish on Apple's flagship iPhone product. 

"It's a very, very, very valuable product to people that build their lives around it. And that's true of 8-year-olds and 80-year-olds," Buffett said of the company's iPhone product. "People want the product. They don't want the cheapest product."

Jim Cramer and the AAP team are discussing fallout from first-quarter earnings from Apple (AAPL) - Get Report and Facebook (FB) - Get Report and how to play the big tech names. Get his insights or analysis with a free trial subscription to Action Alerts Plus.