Investment Insights: Apple and Berkshire Hathaway
Apple (NASDAQ: AAPL) reported a revenue of $416 billion for fiscal year 2025, marking an 8% year-over-year growth in Q4, ending September 27. Its services segment saw a notable 15% growth, indicating strong momentum. The company’s free cash flow and robust balance sheet allowed for $90.7 billion in share repurchases during the year, despite its shares trading at a forward price-to-earnings ratio of 33 as it prepares for accelerated revenue growth in the holiday quarter.
Meanwhile, Berkshire Hathaway (NYSE: BRK.B) maintains a conservative stock valuation at 1.6 times book value, backed by over $350 billion in cash and equivalents, ready for opportunistic investments. This balance sheet positions the company to navigate market volatility, contrasts with Apple’s focus on iPhone sales, and ensures diversification across its various operating assets, including insurance and energy sectors.
Both companies, while presenting strong investment cases through growth potential and financial stability, carry risks. Apple’s reliance on iPhone sales and valuation concerns could affect performance, while leadership transitions at Berkshire raise questions about future management effectiveness. Investors should monitor developments as they evaluate these stocks for a diversified portfolio.
