Nearly half of Warren Buffett’s $337 billion portfolio is invested in Apple

Apple makes up a notable 47.5% of Warren Buffett’s Berkshire Hathaway portfolio. Clearly, the Oracle of Omaha thinks highly of the world’s most valuable company.

Warren Buffett at Berkshire Hathaway’s annual meeting of shareholders on May 8, 2023

Neil Patel for The Motley Fool:
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The average investor could boost their portfolio returns by looking at the stocks Berkshire Hathaway owns. If a company passes Buffett’s test, it may be worth considering…

[I] think after studying the business, he realized that the key to Apple’s story was its strong brand and incredible customer loyalty. Buffett has an appreciation for powerful brands, as evidenced by Berkshire’s stakes in Coca-Cola and American Express, for example. Apple’s gross margin of 44% in the latest quarter (Q3 2023, ended July 1) is indicative of its brand presence.

By offering some of the most innovative and easy-to-use products on the market, like the iPhone, Watch, AirPods, and MacBook, Apple has proven pricing power due to what seems like unlimited demand. And because of a burgeoning services segment, customers are essentially locked into the ecosystem. From an investment perspective, this is wonderful to see.

All of this results in tremendous financial performance. In fiscal 2015 (ended Sept. 26 of that year), Apple posted an operating margin of 30.5% and generated free cash flow of $70 billion, figures that have grown rapidly since then.

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MacDailyNews Take: Investors could do far worse – far, far worse – by not simply mirroring Buffett’s investments.
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