Before we kick this article off, we’d like to share with you the definition of a value stock.

Investopedia says, A value stock is a stock that tends to trade at a lower price relative to its fundamentals (e.g., dividends, earnings and sales) and thus considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.

And Warren Buffett invested in Apple recently. And we can now consider it a value stock.

In the past week, while several investors such as Scion Asset Management, sold off Apple stock to buy Alphabet (Google parent company) stock, Buffett’s Berkshire Hathaway loaded up on Apple stock. This goes gives way to a new kind of investor in the echelons of Apple – one who prefers to wait it out, and doesn’t mind slower growth with big piles of cash and dividend payouts instead of high-growth investments.

While Apple reported higher second-quarter earnings, that were better-than-expected, it is the their second consecutive year of decline in iPhone sales year-on-year. This investment is a good indicator that investors have high hopes for the new version of the iPhone, which is scheduled to be launched soon.

This ushers in an era of new set of investors for Apple, a company which has seen it’s share of torrid growth curves. These new investors are willing to accept Apple’s slow rate of growth and more consistent cash payouts. In fact, Apple is indeed a value stock, paying off a steady cash dividend of $2.03 / share in fiscal 2015.