Buffett's Apple Bet Skyrockets to $185 Billion
Warren Buffett's investment in Apple stock is one of his most successful bets. In 2016, Berkshire Hathaway first invested in Apple, and it has since become its largest holding.
The initial $35 billion bet grew to $185 billion pretax over the past decade, according to Buffett. This investment represents Buffett's belief in buying great businesses at fair prices and investing in companies with strong leadership and management, such as Tim Cook.
Apple had been trading at a deep discount, at just 10 times earnings, its lowest valuation in 10 years when Berkshire first invested. The stock has since become a significant portion of Buffett's portfolio, but he has begun to pare back his Apple position, citing concerns about having one stock make up too large a percentage of the total.
Buffett has praised Apple as 'probably the best business I know in the world' and has said that he thinks of it as 'our third business,' alongside insurance and railroads. He credits Tim Cook with turning the investment into $185 billion pretax, saying 'I think it's appropriate if Tim Cook would take a bow and our shareholders would say thanks to him.'