Warren Buffett holds $69.9 billion in Apple shares, but its stretched valuation could lead to volatility.

From Nasdaq: 2025-01-26 08:44:00

Warren Buffett’s Berkshire Hathaway has delivered a 19.6% average annual gain since 1965. Buffett’s success isn’t a secret, with Berkshire Hathaway reporting its trading activity every three months. Apple is Berkshire’s largest holding, but Buffett sold 25% of its shares in the third quarter of 2024 and has reduced its stake by 66.5% since 2022.

Despite Apple’s recent share reductions by Berkshire Hathaway, the company still holds 300 million Apple shares worth $69.9 billion. Apple’s revenue and free cash flow have seen modest growth, but its stretched valuation compared to performance could lead to volatility in the stock market. However, Apple’s strong free cash flow could support future earnings growth.

Even with potential stock price volatility, Apple’s growing dividend payments could provide stability. While Berkshire Hathaway still holds a sizable amount of Apple shares, buying the stock at its current high valuation may not be ideal for most investors. Retaining some shares in a diversified portfolio could still be beneficial.

Don’t miss the opportunity to invest in potentially lucrative stocks before they take off. With rare “Double Down” stock recommendations from expert analysts, investors could see significant returns. Past examples include Nvidia, Apple, and Netflix, which have shown substantial growth with early investments. Now is the time to consider these opportunities before they pass.



Read more at Nasdaq: Warren Buffett Has $69.9 Billion Invested in This Dividend-Paying Stock. Is It a Buy Now?