Despite concerns about Apple’s performance, Warren Buffett’s Berkshire Hathaway continues to hold Apple as its largest investment. Buffett himself has stated that he believes Apple is an even better business than Coca-Cola and American Express, two other major holdings in Berkshire’s portfolio. He also indicated that Apple is likely to remain Berkshire’s top stock holding, even as his designated successor takes over as CEO.
While Apple has faced challenges recently, such as a decline in revenue and interest from Chinese consumers, its stock has performed well over the past five years, up fourfold. Although it has dipped this year, it has rallied in the past month and remains close to its previous high. The stock is slightly more expensive than the market average but is cheaper than some of its tech giant peers.
Apple’s strengths include a strong services division, a significant stock buyback plan, and upcoming product launches such as the new iPad and iPhone 16. The company has a loyal customer base and a reputation for retaining customers through its ecosystem. One concern for Apple is a recent antitrust action filed by the U.S. Department of Justice, alleging that the company has a monopolistic hold on the smartphone market.
Despite past setbacks and negative assessments, Apple has consistently rebounded and rewarded investors. Analysts believe that Apple’s ability to retain customers through its products and services will continue to drive its success in the future. The company’s resilience and innovative capabilities have helped it overcome challenges and position itself for long-term growth. Buffett’s continued confidence in Apple reflects the company’s strong fundamentals and potential for continued success in the market.
