From Nasdaq, Inc.:

Berkshire Hathaway’s most lucrative investment thus far has been in Apple (NASDAQ: AAPL). Since it first bought shares in 2016, Apple’s stock has surged 631%, amounting to nearly half of Berkshire’s portfolio, with $169 billion. Despite this, investors wonder if it’s too late to buy. Apple’s sales for 2023 reached $383 billion, 3% down from the previous year. 50% of its revenue comes from the iPhone, though its services segment grew 9% last year.

With a market capitalization of 2.9 trillion, Apple currently sits atop the tech companies. Its services segment recorded revenue growth of 9% in the previous fiscal year. However, the decline in sales of iPhones leaves much to be desired for the company. Berkshire’s investment in Apple was smart, but investors ponder if it’s a good option now. Apple’s P/E ratio is 31.4, which is significantly more expensive than the S&P 500, meaning it might not outperform the market.

The Motley Fool Stock Advisor analyst team advises investors to consider the ten best stocks to buy. Apple isn’t among them. Apple’s P/E ratio is currently 31.4, representing a considerable change over its previous 10-year average ratio. Despite garnering significant returns, Apple is unlikely to outdo the S&P 500 in the next five years. Therefore, it’s likely too late to invest in Apple at this point.



Read more: Is It Too Late to Buy Apple Stock?