25% of Warren Buffett-Led Berkshire Hathaway's $288 Billion Portfolio Is Invested in Only 1 Stock

Core Insights - Warren Buffett's investment in Apple has yielded a remarkable 900% total return since 2016, making it one of Berkshire Hathaway's most lucrative bets [1][2] - Despite trimming the position, Apple still constitutes 25% of Berkshire's $288 billion portfolio [2] Group 1: Investment Rationale - Berkshire Hathaway purchased shares in Apple in Q1 2016, viewing it as a powerful consumer brand rather than a tech company [3] - Apple's brand strength and premium market positioning have contributed significantly to its success, with 2.4 billion active devices globally [4] - The company's financial health is robust, with a net cash position of $45 billion as of December 28 [5] Group 2: Valuation and Growth Concerns - Buffett acquired Apple shares at a low valuation, with an average P/E ratio of 10.6 during the first three months of 2016, which appears favorable in hindsight [6] - Recent growth has stagnated, with only a 2% revenue increase in fiscal 2024 and 4% in Q1 2025, indicating potential challenges ahead [8] - The iPhone, which generates over half of Apple's revenue, is in a mature stage, and consumer interest in upgrading has declined [9] Group 3: Current Market Perspective - Apple's current P/E ratio stands at 37.8, reflecting a 65% premium over its trailing-10-year average, suggesting a favorable market perception [10] - However, low growth prospects and high valuation raise concerns about the attractiveness of Apple shares as a current investment [10]