Nice day for Apple.
Apple (AAPL) - Get Report stock popped 3.3% to $172.99 Thursday, after it was revealed that Warren Buffett's Berkshire Hathaway (BRK.A) - Get Report (BRK.B) - Get Report upped its stake in the tech giant by 23.3%.
Generally these 13-F filings aren't that valuable for investors, but it's a different story when we see the quarterly filing of Warren Buffett's stakes, TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment.
When we're talking about Buffett and Apple, these aren't small sums, either. The firm increased its stake to 165.3 million shares, accounting for $28 billion. Apple currently sports a market cap of about $863 billion.
While Apple is the largest buyer of its stock, Buffett's moves are noteworthy. It shows he doesn't care about the quarter-to-quarter noise surrounding the iPhone X, Cramer said.
Apple is becoming a long-term story and has a business model that Buffett traditionally likes. Apple is a consumer products company with a strong brand, dependable revenues (thanks to its services segment) and a massive buyback plan, Cramer noted.
It's worth pointing out that Buffett continues to lower his stake in International Business Machines (IBM) - Get Report . He now holds "just" 2.05 million shares of Big Blue, down more than 90% from his peak stake.
Apple is now Buffett's single largest common stock position.
Pivoting to the analyst side, Cramer also pointed out a research note from Morgan Stanley analyst Katy Huberty -- who's work he highly respects.
Many investors are taking her recent note as a negative on Apple, given that it says overall iPhone activations lost traction in China for January. However, iPhone X activations continue to gain momentum. That bodes well for Apple's bottom line and average selling price.
So while some view this as negative, Cramer views it as bullish news. He points out that Huberty still has an overweight rating on Apple stock to go along with a $203 price target. From current levels, that implies almost 20% upside.
TheStreet's Executive Editor Brian Sozzi analyzes the Apple news below.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.