Warren Buffett, the legendary CEO of Berkshire Hathaway, retired on December 31, 2025, passing the reins to his successor, Greg Abel. Buffett’s tenure was marked by remarkable success, but one of his biggest mistakes involved Apple. Over the years leading up to his retirement, Buffett significantly reduced Berkshire’s stake in Apple, ultimately selling 75% of it before the stock nearly doubled in value. This decision has cost Berkshire Hathaway up to $112 billion in potential gains.
Buffett initially began investing in Apple in early 2016, drawn by the company’s loyal customer base and premium pricing. By September 30, 2023, Berkshire’s Apple stake had grown to over 915 million shares, valued at $156.8 billion. However, Buffett started selling, citing tax-based reasons. At Berkshire’s annual shareholder meeting in May 2024, he explained that he anticipated higher corporate taxes in the future and wanted to sell at a favorable rate.
The timing of Buffett’s sales proved to be unfortunate, as Apple’s stock surged afterward. The 687,642,574 shares he sold in his final nine quarters as CEO have cost Berkshire Hathaway up to $112 billion in missed gains. Despite this, the decision is seen as forgivable because Apple’s valuation no longer aligned with Buffett’s long-standing focus on value investing. As of October 3, 2026, Apple was trading at nearly 38 times its forecast earnings for 2026, a significant departure from the bargain prices Buffett initially found appealing.
Buffett had been a net seller of stocks for 13 consecutive quarters leading up to his retirement, citing high stock market valuations. While the Apple sale may seem like a missed opportunity, it adheres to Buffett’s strict valuation principles. His successor, Greg Abel, now faces the challenge of managing Berkshire’s $350 billion investment portfolio without the guidance of the Oracle of Omaha.