Summary: Warren Buffett, the Oracle of Omaha, is renowned worldwide as one of the greatest capital allocators. Investors are eager to examine Berkshire Hathaway’s massive $364 billion portfolio for potential investment ideas. Among Warren Buffett’s largest stock holdings sits Apple (NASDAQ: AAPL), representing a staggering 43% of the entire portfolio. In this piece, we delve into why the tech giant from Cupertino holds such a prominent place in Warren Buffett’s stock portfolio and whether it’s still a good buy.
Who is Warren Buffett?
Warren Buffett is a legendary investor and the chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company.
Born in 1930, Warren Buffett began investing at a young age and gradually built his fortune through astute stock picks and value investing principles. Over the decades, he has amassed a considerable following for his investment prowess and straightforward advice on wealth creation.
Warren Buffett’s net worth
What stocks does Warren Buffett own?
Buffett’s investment philosophy revolves around identifying undervalued companies with strong fundamentals and long-term growth potential. He favors businesses with durable competitive advantages, also known as economic moats, which allow them to maintain market dominance and sustain profitability over time.
Among his company’s notable holdings are:
- Apple (NASDAQ: AAPL);
- Bank of America (NYSE: BAC);
- American Express (NYSE: AXP);
- Coca-Cola Co (NYSE: KO);
- Chevron Corp (NYSE: CVX).
What is Warren Buffett’s largest stock holding?
Apple (NASDAQ: AAPL)
Under the leadership of CEO Tim Cook, Apple has become synonymous with innovation and quality. Buffett first invested in Apple in early 2016, recognizing its exceptional brand power and financial strength. Since then, the stock has soared by a remarkable 375%, cementing its status as one of Buffett’s most profitable investments.
Key factors behind Buffett’s bet on Apple
- Strong brand: Apple’s iconic brand and popular product lineup, notably the iPhone, have contributed to its cult-like following and pricing power;
- Financial performance: With a gross margin of 39% and an operating margin of 30% in fiscal 2015, Apple boasts impressive profitability and robust cash flow generation;
- Stable balance sheet: Apple maintains a pristine balance sheet, reducing the risk of financial distress and earning Buffett’s confidence as a long-term investment.
Apple stock price today
Apple price prediction 2025
According to 27 Wall Street analysts surveyed in the last three months, the average price target for Apple in 2025 is $203.87, with a high forecast of $250.00 and a low forecast of $158.00. This represents an 18.34% change from the current price of $172.28.
| Metric | Value |
| Average price target | $203.87 |
| High forecast | $250.00 |
| Low forecast | $158.00 |
| Change from current | +18.34% |
Should you buy Apple stock right now?
While Apple has delivered exceptional returns, its current valuation may give investors pause. With a price-to-earnings (P/E) ratio of 26.6, significantly higher than Buffett’s initial investment, the stock appears overvalued. Moreover, Apple’s growth trajectory has moderated, with Wall Street analysts projecting modest revenue expansion in the coming years.
Warren Buffett’s stock portfolio
Warren Buffett’s decision to invest heavily in Apple underscores his confidence in the company’s enduring appeal and financial strength. However, with the stock trading at elevated valuations and facing slowing growth prospects, investors should exercise caution before jumping in. While Apple remains a formidable business, it may not represent the compelling investment opportunity it once did.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
