Warren Buffett holds 25% of Berkshire Hathaway's portfolio in Apple

From Nasdaq: 2025-03-08 09:30:00

Warren Buffett’s most lucrative bet in the past decade was purchasing shares in a business that has seen a 900% total return since 2016, representing 25% of Berkshire’s portfolio. This business is Apple, known for its powerful consumer brand, innovative products, and high pricing power with $234 billion in revenue and $53 billion in net income in fiscal 2015.

Apple’s balance sheet shows a net cash position of $45 billion, making it a high-quality business. Buffett bought Apple shares at a cheap valuation with an average P/E ratio of 10.6 in 2016. However, current growth rates are stagnant, with revenue increasing only 2-4% in recent years, primarily driven by iPhone sales.

Despite Apple’s strong brand and profitability, investors should be cautious about buying the stock now due to low growth prospects and an expensive valuation with a P/E ratio of 37.8. The market’s favorable view may not align with the company’s growth trajectory and potential for future product innovation.

While Buffett’s track record is impressive, investors should consider other options besides Apple for potential stock purchases. The Motley Fool’s Stock Advisor team identified 10 best stocks to buy now, excluding Apple, with the potential for significant returns. Stock Advisor has outperformed the S&P 500 since 2002, providing investors with valuable insights and stock picks for success.



Read more at Nasdaq: 25% of Warren Buffett-Led Berkshire Hathaway’s $288 Billion Portfolio Is Invested in Only 1 Stock