Warren Buffett-led Berkshire Hathaway Has 22% of Its $290 Billion Portfolio Invested in 1 Stock That's Up 749% in 9 Years

Core Insights - Berkshire Hathaway has achieved a nearly 20% annualized return on shareholder capital since 1965 under Warren Buffett's leadership [1] - Apple has been a significant contributor to Berkshire's portfolio, with its shares soaring 749% over the past nine years, representing 22% of Berkshire's $290 billion portfolio [2] Company Performance - Apple is recognized for its strong brand loyalty and premium positioning in the consumer electronics market, which has been bolstered by continuous innovation [6] - The company has a high profit margin, averaging 30% over the past five years, and generates substantial free cash flow [7] Investment Considerations - Despite Apple's strong fundamentals, the current P/E ratio of 32.9 suggests that the stock may not be a worthwhile investment at this time, as it is three times higher than when Buffett first invested [13] - Analysts project a modest revenue growth rate of 5.3% from fiscal 2024 to fiscal 2027, indicating potential challenges in outperforming the market in the coming years [11] - Criticism has been directed at Apple's slow progress in artificial intelligence, which may hinder meaningful growth [12]