Nearly 50% of Warren Buffett-Led Berkshire Hathaway’s $369 Billion Portfolio Is Invested in Only 1 Stock
From Nasdaq:
– Berkshire Hathaway, a holding company with exposure to various industries and a massive public-equities portfolio, owns a significant holding in Apple (NASDAQ: AAPL), representing nearly half of its portfolio.
– Apple’s brand strength and ability to maintain pricing power sets it apart in the consumer electronics industry, maintaining an average gross margin of 41% over the last five years.
– Apple’s profitability, brand strength, and consistent growth in net income encouraged Warren Buffett to make the initial investment, driven by a ridiculously cheap valuation.
– However, concerns arise over Apple’s slowing growth, revenue drop in fiscal 2023, and an expensive valuation today, suggesting it may not be the best long-term investment.
– The Motley Fool Stock Advisor analyst team opts not to include Apple among the best 10 stocks for investors to buy now, further raising doubts about the company’s investment potential.
Read more: Nearly 50% of Warren Buffett-Led Berkshire Hathaway’s $369 Billion Portfolio Is Invested in Only 1 Stock