Warren Buffett has 40% of his portfolio invested in Apple, but its growth prospects are limited.

From Nasdaq: 2024-05-26 05:20:00

Warren Buffett’s investment in Apple has been a huge success, with shares up 631% since 2016. Buffett was attracted to Apple’s strong brand, high gross margin, customer loyalty, and profitability. However, with Apple now valued at $2.9 trillion and a P/E ratio of 29.7, Buffett may not see it as a wise buy now.

Despite Apple’s past success, its growth prospects are limited, with slowing revenue growth and a mature iPhone market. Analysts expect sales to rise by just 4.6% annually through 2026. Unless Apple introduces a game-changing product, it’s best to be cautious about investing in the company at its current valuation.

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Read more at Nasdaq: 40% of Warren Buffett’s $379 Billion Portfolio Is Invested in Only 1 Stock