From Nasdaq: 2024-04-27 04:24:00

Warren Buffett’s investment success is well-known, with Apple being a standout in Berkshire Hathaway’s portfolio. Apple’s stock has surged 527% since 2016, making up 41% of Berkshire’s holdings.

Despite Apple’s high market cap of $2.6 trillion and P/E ratio of 25.7, Buffett remains invested for several reasons, including its branding, ecosystem, and cash flow generation.

Buffett believes Apple will continue to deliver market-beating returns, benefiting from the tech giant’s capital allocation policies and shareholder-friendly moves like share buybacks and dividends.

With a substantial cash pile of $168 billion, Berkshire faces a challenge in finding attractive investment opportunities. Selling Apple shares would exacerbate this issue, leading Buffett to believe Apple offers better returns than cash.

Consider other stock options, as Apple may not be among the 10 best stocks recommended by the Motley Fool Stock Advisor team, which has outperformed the S&P 500 since 2002 with regular updates and new stock picks.

Neil Patel and his clients have no positions in the mentioned stocks, but the Motley Fool recommends and holds positions in Apple and Berkshire Hathaway. This information provides insights into Buffett’s investment decisions and encourages further research into potential investment opportunities.



Read more at Nasdaq: After Apple Stock Has Skyrocketed 527%, Why Does Warren Buffett Still Own It?