From NASDAQ:

Warren Buffett’s most successful investment has been in Apple (NASDAQ: AAPL), with shares soaring 615% since 2016. A staggering 45.7% of Berkshire’s portfolio is solely represented by Apple. Despite concerns of a high market cap and P/E ratio of 30.4, Buffett holds on to Apple for several reasons.

Buffett’s favored investment strategy and Apple’s potential for strong returns are the two main factors for holding onto the stock. Apple’s economic moat and ecosystem drive stickiness and financial success, making it a long-term holding.

Beneficial capital allocation and the potential opportunity cost of selling Apple contribute to Buffett’s decision. Apple’s policy of retiring its outstanding stock increases Berkshire’s ownership stake as well.

The potential return on Berkshire’s Apple holdings and Buffett’s preference for Apple over cash drive his retention of the stock. The strategic advantage of holding on to Apple outweighs concerns about its valuation and size.

The Motley Fool Stock Advisor recommends considering other investment options before buying through their 10 best stocks for investors, which does not include Apple. The service has tripled S&P 500’s return since 2002 and provides guidance for success.

Neil Patel and his clients have no position in any of the stocks mentioned. The views and opinions expressed are solely those of the author. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.



Read more: After Skyrocketing 615%, Why Does Warren Buffett Still Own Apple Stock?