Warren Buffet’s over 40% portfolio is in Apple, but why?

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on Mar 13, 2024
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  • Berkshire Hathaway's sale of 10 million shares of Apple in Q4 2023.
  • Apple still is nearly 43% of Buffet's entire $364 billion portfolio.
  • Buffet has lauded Apple as "a better business than any we own."

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Warren Buffett, the oracle of Omaha, has long been recognised for his astute investment choices, with Apple Inc. emerging as a standout gem in Berkshire Hathaway’s diversified investment portfolio.

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As the largest holding, Apple encapsulates Buffett’s investment philosophy, combining robust growth prospects with unparalleled business excellence.

Apple stands as Buffet’s crown jewel

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Buffett’s affinity for Apple goes beyond mere preference; it’s a testament to his belief in the tech giant’s enduring value.

Last year, at a Berkshire shareholder meeting, he lauded Apple as “a better business than any we own,” highlighting its superior position within an already impressive portfolio.

Buffett’s profitable journey with Apple shares

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Since initiating his stake in Apple in the first quarter of 2016, Buffett has witnessed the company’s market capitalization swell by an astonishing $2.2 trillion.

This meteoric rise shows the tech giant’s substantial contribution to Berkshire’s overall investment success.

Berkshire Hathaway’s sale of 10 million shares of Apple in Q4 2023, but Apple still is nearly 43% of his entire $364 billion portfolio.

Buffet a fan of Apple business model

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In comparing Apple to Berkshire’s other subsidiaries, Buffett has been clear: Apple’s business model is unmatched, surpassing even the most profitable ventures within Berkshire’s holdings.

The tech company’s success, driven by innovation and customer loyalty, has firmly positioned it as Buffett’s top business.

Apple’s share repurchases a hidden benefit

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One aspect of Apple that Buffett particularly appreciates is its aggressive share repurchase program.

This strategy has incrementally increased Berkshire’s ownership stake from 5.4% to 5.8%, enhancing its investment without additional outlay from Buffett’s end.

Apple’s customer loyalty

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Buffett also highlights Apple’s deep-seated value in consumers’ lives, noting the tech company’s products, like the iPhone, are deemed indispensable by many.

This customer loyalty not only demonstrates Apple’s market dominance but also its integral role in Berkshire Hathaway’s investment strategy.

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