Berkshire Hathaway’s Investment in Apple
Berkshire Hathaway remains heavily invested in Apple, which constitutes over 20% of its portfolio, valued at $73.8 billion. Despite trimming its holdings since late 2023, Apple has been a cornerstone investment for Berkshire, with shares climbing 1,140% since their initial purchase in Q1 2016. However, Berkshire’s cash reserves, totaling $365.5 billion or 34% of its market cap, may hinder future performance.
As of September 2, Berkshire Hathaway shares have risen 236% over the last decade but underperformed compared to the S&P 500’s total return. The new CEO, Greg Abel, faces challenges in maintaining this growth trajectory amid significant cash holdings and concerns over valuation, as Apple trades at a price-to-earnings ratio of 37.2.
Currently, Apple has shown strong demand for its iPhone 17, with a year-over-year revenue increase of 16.2% through the first nine months of fiscal 2026, ending June 27. Investors are cautiously evaluating whether Berkshire shares can outperform the S&P 500 in the long run.
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