Warren Buffett's investment strategy showcases a mix of boldness and caution, with nearly $99 billion concentrated in two iconic brands: Apple and Coca-Cola. Through Berkshire Hathaway, Buffett has made a surprising move in 2024, significantly trimming his Apple stake by about two-thirds.
Berkshire now holds around 300 million Apple shares, valued at $69.9 billion as of September. This is a notable drop from the 905 million shares owned at the end of 2023. Despite this reduction, Apple remains the cornerstone of Berkshire’s equity portfolio, representing 28% of its holdings, according to CNBC.
Buffett’s Strategy
Buffett’s approach remains consistent: investing in companies with strong brands and reliable financial performance. Apple, often regarded as his “crown jewel,” has seen a 31% rise in its stock value this year, underscoring the wisdom of his long-term investment in the tech giant. His foresight in identifying Apple as a resilient and profitable tech leader continues to earn praise.
However, his concentrated reliance on Apple has sparked debate. Critics argue that such a heavy focus on one tech company could be risky, especially given the volatility of the tech sector, shifting consumer preferences, and potential market disruptions.
Apple’s Recent Performance
While Apple has demonstrated robust growth, recent financial results suggest a slight slowdown. In the last fiscal year, total revenue declined by 0.8%—a modest drop, but enough to raise some concerns. Nevertheless, Morgan Stanley analyst Erik Woodring remains optimistic, setting a price target of $273 for Apple, up from its current $216, as reported by Business Insider.
Apple’s growing focus on services continues to bolster its stability. Revenues from offerings like the App Store, streaming, and cloud services have grown by 23% over recent years, helping to offset fluctuations in iPhone sales.
Berkshire now holds around 300 million Apple shares, valued at $69.9 billion as of September. This is a notable drop from the 905 million shares owned at the end of 2023. Despite this reduction, Apple remains the cornerstone of Berkshire’s equity portfolio, representing 28% of its holdings, according to CNBC.
Buffett’s Strategy
Buffett’s approach remains consistent: investing in companies with strong brands and reliable financial performance. Apple, often regarded as his “crown jewel,” has seen a 31% rise in its stock value this year, underscoring the wisdom of his long-term investment in the tech giant. His foresight in identifying Apple as a resilient and profitable tech leader continues to earn praise.
However, his concentrated reliance on Apple has sparked debate. Critics argue that such a heavy focus on one tech company could be risky, especially given the volatility of the tech sector, shifting consumer preferences, and potential market disruptions.
Apple’s Recent Performance
While Apple has demonstrated robust growth, recent financial results suggest a slight slowdown. In the last fiscal year, total revenue declined by 0.8%—a modest drop, but enough to raise some concerns. Nevertheless, Morgan Stanley analyst Erik Woodring remains optimistic, setting a price target of $273 for Apple, up from its current $216, as reported by Business Insider.
Apple’s growing focus on services continues to bolster its stability. Revenues from offerings like the App Store, streaming, and cloud services have grown by 23% over recent years, helping to offset fluctuations in iPhone sales.