Warren Buffett to Step Down as CEO of Berkshire Hathaway by 2025
Warren Buffett will officially step down as CEO of Berkshire Hathaway (NYSE: BRK.A, BRK.B) by the end of 2025. Following his departure, speculation arises regarding potential changes in the company’s investment portfolio, particularly the fate of its largest position, Apple (NASDAQ: AAPL), which is currently valued at approximately $63 billion.
Apple Investment’s Origins and Current Position
Berkshire initiated its Apple investment in 2016 with a $1 billion stake, largely influenced by Buffett’s investment deputies, Ted Weschler and Todd Combs. Apple comprised about 50% of Berkshire’s publicly traded portfolio in 2024 but has since decreased to around 24%. The company’s stock has seen a 10% decline over the past year, raising questions about potential further trimming of this position.
Current Valuation and Future Outlook
Apple’s stock is now trading at 32 times its trailing earnings, with expected earnings growth of only 6.5% this year. Analysts predict that Berkshire’s continued adjustments to its stake in Apple will be driven more by valuation considerations than Buffett’s retirement.
