Buffett's Secret to Success: Apple's Masterpiece in the Berkshire Portfolio

Warren Buffett, the Oracle of Omaha, has written his success story by surpassing the markets for decades. His holding company, Berkshire Hathaway, has achieved an impressive annualized return of 19.8% since 1965, compared to 10.2% for the S&P 500. This was accomplished through the acquisition and operation of around 60 companies, including renowned names like Benjamin Moore and Duracell, as well as investments in approximately 45 stocks. At the top of the portfolio sits Apple, with a weighting of 29.6%, equivalent to a value of $92.5 billion. At the Berkshire Hathaway annual meeting in February, Buffett praised Apple as a better business than long-time favorites such as Coca-Cola and American Express, calling the stock an indispensable part of his portfolio. Although he recently sold some of his Apple shares, Buffett sees significant value in the holding. Buffett regularly highlights the outstanding management of Apple under CEO Tim Cook. The company's unwavering customer loyalty and impressive technology offerings give Apple a lasting competitive advantage. Additionally, Buffett applauds Apple's active share buybacks, which he has repeatedly welcomed in shareholder letters. Apple is currently trading at about 35 times the earnings of the last twelve months, close to all-time highs. This could indicate an imminent short-term correction, but Apple stock still offers long-term investors a solid foundation.