Warren Buffett’s best dollar gain in the past decade came from a consumer-facing enterprise, Berkshire’s top holding. Despite numerous stock sales, it still represents 22% of the conglomerate’s portfolio. Should investors follow Buffett’s lead? Berkshire’s portfolio is full of strong brands, like Apple, which passed Buffett’s filter with its powerful brand, pricing power, and profits.

Berkshire initiated a position in Apple in 2016, a decision that proved to be a masterstroke. Apple’s brand, pricing power, profits, and financial shape align with Buffett’s investment criteria. However, with Apple’s growth prospects and AI initiatives in question, the stock’s current valuation may not be attractive for investors. Apple’s P/E ratio of 32.9 is three times what Buffett initially paid.

As of March 31, Berkshire Hathaway owns 300 million Apple shares, indicating continued bullishness on the stock. However, Apple’s lackluster growth and high valuation raise concerns about its future performance. The Motley Fool’s Stock Advisor team has identified 10 stocks with better potential returns than Apple. Consider joining Stock Advisor to access this list and potentially benefit from market-crushing returns.

Read more at Nasdaq: Warren Buffett-led Berkshire Hathaway Has 22% of Its $290 Billion Portfolio Invested in 1 Stock That’s Up 749% in 9 Years