Of course! Let's dive into the fascinating world of Berkshire Hathaway's investment in Apple, a relationship that has become one of the most talked-about in the financial world.
Are you ready to uncover the full story behind Warren Buffett's "biggest investment ever" and understand why the "Oracle of Omaha" has been making some surprising moves with his Apple shares? If you're a curious investor, a tech enthusiast, or just someone who loves a good business story, you're in the right place.
Step 1: Understanding the Foundation of the Investment
Before we get into the numbers, it's crucial to understand why Berkshire Hathaway, a company known for its aversion to technology stocks, decided to make Apple its largest holding. Warren Buffett often says he only invests in companies he understands, and for a long time, tech was not in his "circle of competence." So, what changed?
The Shift in Perspective: Buffett didn't see Apple as a tech company in the same way he saw, say, a software firm. He viewed it as a consumer products company. He recognized the incredible brand loyalty, the "ecosystem" that locks customers into the Apple family of products, and the immense pricing power that comes with that. He saw the iPhone as more of a utility than a gadget, a product that people are willing to pay a premium for and stick with.
The "Moat" of a Loyal Customer Base: Buffett famously loves companies with a strong "moat" - a sustainable competitive advantage that protects them from rivals. Apple's moat is its brand and its customer base. The love people have for their iPhones, MacBooks, and other Apple products is a powerful force that creates a predictable and reliable stream of revenue.
So, the first step is to appreciate that this isn't a traditional tech investment for Berkshire Hathaway; it's a bet on the power of a consumer brand.
Tip: Read in a quiet space for focus.
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| How Much Of Apple Is Owned By Berkshire Hathaway |
Step 2: The Timeline of Berkshire's Apple Acquisition
The relationship between Berkshire Hathaway and Apple wasn't a one-time purchase. It was a gradual and strategic build-up over several years.
Sub-heading: The Beginning (2016-2017)
Berkshire Hathaway first began investing in Apple in Q1 2016, with an initial purchase of just under 10 million shares.
They continued to accumulate shares, and by the end of 2016, their stake had grown to over 57 million shares. This showed a growing confidence in the company.
Sub-heading: The Aggressive Buying Spree (2018-2023)
In 2018, Buffett went on a shopping spree, buying an additional 75 million shares in early 2018.
By the end of 2023, the position had grown to over 900 million shares, making it Berkshire's largest holding by far, accounting for over 50% of its equity portfolio at its peak value. The value of this investment soared to over $150 billion.
Sub-heading: The Great Trim (2024-2025)
This is where the story gets really interesting. Beginning in 2024, Berkshire Hathaway started to significantly reduce its stake in Apple.
In Q2 2024 alone, they reportedly sold over $75 billion worth of stock, reducing their stake by nearly 50%.
This trend has continued into 2025. According to recent filings, Berkshire's holdings have been trimmed to approximately 300 million shares, now valued around $60 billion.
Step 3: Calculating the Ownership Percentage
This is the key part of the answer. So, how much of Apple is owned by Berkshire Hathaway?
To determine the percentage of ownership, we need two key numbers:
Tip: Take your time with each sentence.
Number of shares held by Berkshire Hathaway: As of the latest available information in Q1 2025, Berkshire Hathaway holds approximately 300 million shares of Apple.
Total outstanding shares of Apple: This number fluctuates slightly due to buybacks, but as of recent data, Apple has approximately 15 billion shares outstanding.
Now, let's do the math:
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The Big Reveal: Based on the latest data, Berkshire Hathaway owns approximately 2% of Apple's total outstanding shares.
While 2% might not sound like a lot, it’s a massive stake in one of the world's largest companies by market capitalization. This makes Berkshire one of the largest institutional shareholders, though still far behind major index funds and asset managers like Vanguard and BlackRock.
Step 4: The 'Why' Behind the Trimming
You might be asking, "Why would Buffett sell off such a profitable position?" This is a crucial question and highlights some of Buffett's core principles.
Sub-heading: Valuation Concerns
When Berkshire began buying Apple stock, its price-to-earnings (P/E) ratio was around 10-11. It was a value stock.
Now, Apple trades at a much higher valuation, around 31 times trailing earnings. Buffett has mentioned that the valuation is a key factor in his decision to sell. He prefers to buy when a stock is undervalued, not when it's trading at a premium.
Sub-heading: Position Size and Portfolio Concentration
At its peak, Apple represented a staggering portion of Berkshire's equity portfolio, sometimes exceeding 50%.
This level of concentration in a single stock, no matter how great the company, can be a risk. By trimming the position, Buffett is rebalancing the portfolio and reducing the overall risk.
Sub-heading: The Tax Rationale
Buffett has also been transparent about the tax implications. He's been taking significant gains on the Apple stock, and he has mentioned that he's happy to pay the taxes on those gains, stating, "We don't mind paying taxes at Berkshire." This is a classic Buffett move, aligning his actions with his public persona and a long-term, tax-aware investment strategy.
Tip: Scroll slowly when the content gets detailed.
10 Related FAQ Questions
Here are some quick answers to common questions about this topic.
How to find out Berkshire Hathaway's latest holdings? You can find out Berkshire Hathaway's latest holdings by reviewing their 13F filing with the SEC, which is filed quarterly. These filings list all of their public equity holdings.
How much money has Berkshire Hathaway made on its Apple investment? Berkshire Hathaway has made a significant profit on its Apple investment. The cost basis for their initial purchases was around $35-$40 billion, and at its peak value, the stake was worth over $150 billion, representing a massive gain.
How to interpret Warren Buffett's selling of a stock? Warren Buffett's selling of a stock can be due to a variety of factors, including valuation concerns, portfolio rebalancing, or a change in the company's fundamentals. It's not always a signal that the company is a bad investment, but rather that it may not fit his strict valuation criteria at the current price.
How to invest in Apple stock like Warren Buffett? To invest like Warren Buffett, you should focus on long-term value, buy companies with strong brands and competitive advantages (a "moat"), and be disciplined enough to hold through market volatility. He emphasizes buying a "wonderful company at a fair price."
Tip: Don’t skim — absorb.
How does Apple's share buyback program affect Berkshire Hathaway's ownership? Apple's share buyback program helps increase Berkshire Hathaway's percentage of ownership over time, even if they don't buy any new shares, as the total number of outstanding shares decreases. However, Berkshire's recent sales have more than offset this effect.
How is Berkshire Hathaway's investment in Apple different from a typical tech investment? It's different because Buffett views Apple as a consumer products company with a strong brand and loyal customer base, rather than a pure technology company whose success is tied to innovation cycles. He invests in the business model, not just the technology.
How to compare Berkshire Hathaway's Apple stake to other major shareholders? While Berkshire is a top shareholder, major institutional investors like Vanguard and BlackRock often hold larger stakes in Apple through their index funds and ETFs.
How did Tim Cook's leadership impact Berkshire's investment? Warren Buffett has praised Tim Cook's leadership, acknowledging that Cook has built upon Steve Jobs's foundation and developed Apple into a consistent cash-generating machine, which is a key factor in Berkshire's investment thesis.
How to understand the concept of a 'circle of competence'? A "circle of competence" is a concept that Warren Buffett emphasizes, where investors should only invest in businesses they genuinely understand. He avoided tech stocks for a long time because they were outside his circle, but he made an exception for Apple because he understood its consumer brand.
How did Berkshire Hathaway's Apple investment affect its overall portfolio? The Apple investment has been a massive driver of returns for Berkshire Hathaway's portfolio. At its peak, it was the single largest holding and a primary contributor to the company's value.
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