From Nasdaq: 2025-04-22 08:00:00

Warren Buffett’s Berkshire Hathaway has seen its share price soar at a compound annual rate of about 20%, outperforming the S&P 500. Buffett’s best investment decision may have been buying shares of a dominant business that have surged 649% since 2016, representing 22% of Berkshire’s public equity portfolio.

Buffett’s surprise investment in Apple in 2016 was driven by the tech giant’s strong brand, premium market positioning, pricing power, and ecosystem strategy. Apple’s profitability, cash generation, and low valuation at the time made it an attractive buy for Berkshire.

Despite Apple’s recent stock price decline, the current P/E ratio of 31.3 is three times what Buffett initially paid, signaling an expensive valuation. With EPS decline and modest profit growth expectations, investors may want to wait for a better entry point for Apple stock.

The Motley Fool’s Stock Advisor team has identified the 10 best stocks to buy now, excluding Apple. The top 10 list has historically outperformed the S&P 500, with significant returns on past recommendations like Netflix and Nvidia. Join Stock Advisor for access to the latest recommendations for potential market-crushing returns.



Read more at Nasdaq: 22% of Warren Buffett-Led Berkshire Hathaway’s $265 Billion Portfolio Is Invested in Only 1 Stock