Is Apple (APPL) the Best Stock in Warren Buffett’s Portfolio?
Warren Buffett remains one of the most well-known names in finance. He has continually been looked upon as a guiding force for investors pondering what stock to eye and where to invest their money. Yet, with the dominance of Apple (APPL) in the last several years, has it become the best stock in Warren Buffett’s vast portfolio?
The revolutionary tech company has been one of the most dominant brands in the industry. Its line of iPhone and iPad products has ballooned them to be among the most valuable companies in the world on any given week. Moreover, its further ventures into emerging tech industries have only reinforced their position.
Buffett is among the most successful investors that Wall Street has ever seen. The Oracle of Omaha has a network of $143 billion, according to Bloomberg’s Billionaire Index of 2024. That positions him as the eighth wealthiest person on the planet, with Apple likely playing a large part in the continued growth of his wealth.
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Where Does Apple Rank in Warren Buffett’s Portfolio?
For a number of years, Apple (APPL) has been a key stock for Warren Buffet, emerging as a prime investment option for his impressive portfolio. Over the last seven years, the stock brought more than $100 billion in profit to Berkshire Hathaway. Moreover, it became one of the largest holdings within the public portfolio of the firm.
However, recent filings reveal that Buffett sold more than 389 million shares in Apple during Q2 of this year. That represented almost half of Berkshire’s stake in the company, resulting in some concern from traders. In an investor letter from Vltava Fund, the methodology behind the sale is connected to taxation concerns. Specifically, amid the potential capital gains tax increasing to 28%.
“Apple comprised a very large position in Berkshire’s public portfolio,” the Q3 letter said. “There has been a great deal of speculation in the market about what Buffett’s sale of Apple signals regarding his view of the stock market. I think the reason is much simpler. Buffett probably considers Apple stock so expensive that he prefers to cash in at 20% less (after all, Berkshire must pay tax on its profits).”
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The letter revealed that Buffett began selling in Q1, but it didn’t impact the overall effect APPL had on his portfolio. The company remains the top stock for Buffet, with a value above $84 billion. Moreover, it comprises over 30% of his holdings. His vast holdings have also encouraged more than 180 hedge funds to invest in Apple, making it one of the most valuable stock options on the market.
Apple has also had incredible performances throughout the year. In June, it reported Q2 revenue of $85.8 billion. That is a 5% year-over-year increase, with product revenue growing 2%. These facets and the future trajectory of the stock, reinforce its position as the top stock in Warren Buffett’s portfolio.