Warren Buffett cautions against buying Apple stock: find out more

Apple Inc (NASDAQ: AAPL) opened in the “green” this morning after influential investor Warren Buffett admitted in a CNBC interview that he sold his stake in the iPhone maker a bit “too soon”.

However, his admission doesn’t automatically warrant that long-term investors load up on AAPL today.

In fact, Buffett himself cautioned against buying it in the current market.  

At the time of writing, Apple stock is down over 10% versus its year-to-date high in early February.

Why Buffett doesn’t find Apple stock attractive in 2026

Even with AAPL shares trading significantly below their recent peak, Buffett remains disciplined, noting that the current price tag doesn’t offer the “margin of safety” he’s famous for seeking.

At a forward price-to-earnings (P/E) ratio of about “30x”, the legendary investor doesn’t see Apple as inexpensive in a market where both the Dow Jones and Nasdaq have slipped into the correction territory.

Speaking with CNBC’s Becky Quick, he emphasised that AAPL is Berkshire’s largest holding at about $62 billion – but he was uncomfortable when its weight began to “dwarf” nearly every other asset in the conglomerate’s portfolio combined.

When would it be appropriate to buy AAPL shares?

Buffett hasn’t closed the door on Apple shares; in fact, he’s waiting for a “fat pitch”.

On Tuesday, the chairman of Berkshire Hathaway noted it’s “not impossible” that stock could sink to a level where the conglomerate would “buy a lot of it”.

According to market experts, continued “geopolitical turmoil” in the Middle East and the resulting spike in energy costs could be the catalyst that drives AAPL lower.

If inflationary pressures persist and consumer spending on premium hardware cools, Apple could see its multiple compress further.

Buffett’s remarks suggest he may be eyeing a price point where Apple’s relative strength index (14-day) signals “oversold conditions” – a fundamental disconnect between the firm’s long-term value and its short-term price.

The Buffett playbook: how to play Apple Inc

For investors looking to follow the “Oracle of Omaha,” the strategy is one of high conviction but extreme price sensitivity.

Buffett continues to shower praise on CEO Tim Cook – arguing he’s managed the “hand” dealt to him by Steve Jobs better than Jobs himself might have.

This confirms that his long-term thesis on Apple’s ecosystem and management remains rock-solid.

However, Buffett’s refusal to buy today serves as a warning – do not mistake a “correction” for a “bargain”.

The recommendation for investors is to maintain existing positions in high-quality tech, but keep dry powder ready for a deeper potential slide in the coming months.

Wall Street analysts, however, seem more bullish on AAPL stock, with its mean price target set at nearly $296, indicating potential upside of about 20% from here.