On the eve of Apple's annual iPhone event, the first under new chief executive John Ternus, a company long woven into the fabric of everyday life stands at a quiet crossroads. Warren Buffett's decade-old bet on Apple, once about $35 billion, has grown into a holding worth many times that and remains the largest piece of Berkshire Hathaway's portfolio. Meanwhile, Peter Lynch's lingering regret over a stock he judged simple and sound reminds investors that clarity is often recognized only in hindsight. Whether a possible foldable iPhone reshapes that story will show how a mature giant tries to r
Why Apple Remains Buffett's Favourite Bet as Foldable iPhone Nears Launch
$35 billion in, around $185 billion out, and he "didn't have to do a damn thing"
Mark
Why is a product launch being framed around Warren Buffett?
Mimi
Because Apple is Berkshire's largest holding, nearly 22% of a portfolio of about $263 billion. What happens to Apple matters to him in a way it doesn't for most holders.
Mark
And the returns he describes are striking.
Mimi
About $35 billion invested from 2016 to 2018, which he says grew to around $185 billion before tax, including dividends and gains. He added that he didn't have to do a damn thing.
Luke
That $185 billion is Buffett's own figure, relayed through Business Insider. Nothing here independently checks it, and it's before tax.
Mark
He also sold a big chunk, didn't he?
Mimi
Yes, and he told CNBC he sold too soon. He said he would buy more, but not at the price then.
Mark
Where does Peter Lynch fit in?
Mimi
He is the counterpoint. In 2023 he said Apple was easy to understand and that he missed it, even after thinking his daughter's $250 iPod carried a high margin.
Luke
Be careful about the foldable too. Apple hasn't confirmed it. The $2,000 to $2,500 price and the passport-style fold come from reports and leaks.
Mimi
And the $45 billion revenue forecast is one IDC analyst's expectation, not a result.
Luke
Right. Whether the stock rises on the launch is unknown.
Der Puls
- Apple's annual event could unveil a first foldable iPhone priced between $2,000 and $2,500, a bold move that puts pressure on the stock.
- Buffett's Berkshire stake, roughly 22% of its equity holdings, keeps Apple under constant investor scrutiny.
- Analysts like IDC's Nabila Popal expect the device to sell fast on exclusivity, with over $45 billion in revenue projected by year's end.
- John Ternus faces his first major test as CEO, with markets watching whether the Cook-era gains can continue.
- Investors will judge the stock's reaction to the launch in the coming days, and the outcome remains open.
On the eve of Apple's annual iPhone event, the first under new chief executive John Ternus, a company long woven into the fabric of everyday life stands at a quiet crossroads. Warren Buffett's decade-old bet on Apple, once about $35 billion, has grown into a holding worth many times that and remains the largest piece of Berkshire Hathaway's portfolio. Meanwhile, Peter Lynch's lingering regret over a stock he judged simple and sound reminds investors that clarity is often recognized only in hindsight. Whether a possible foldable iPhone reshapes that story will show how a mature giant tries to renew its wonder.
Apple holds its annual iPhone event today, the first since John Ternus took over as chief executive. Reports and leaks suggest the company will finally show a foldable iPhone, a device that could cost between $2,000 and $2,500 and open like a passport. Apple has not confirmed the product, but the anticipation has put the stock under close watch.
IDC's Nabila Popal believes the phone will sell well even at that price, crediting Apple's talent for building exclusivity and scarcity. She projects more than $45 billion in revenue by the end of next year, though foldables still hold only a single-digit share of the phone market.
The launch sits within a longer story about Apple as a Berkshire Hathaway holding. Buffett began buying in 2016, investing about $35 billion, and by his account the stake grew to roughly $185 billion before tax. It remains Berkshire's largest position, nearly 22% of its equity holdings. Buffett has said he sold too soon, yet he still joked that Tim Cook had made more money for shareholders than he ever did running the company.
Peter Lynch offers the opposite lesson. He has said he regrets never buying Apple, which he found easy to understand and solidly financed. Even after noticing his daughter's iPod, he never acted.
For shareholders now, the question is how the stock responds once the foldable appears, and whether Ternus can carry Apple's momentum forward in his first big test.
Apple is holding its annual iPhone event today, the first since John Ternus took over as chief executive, and the stock is under the kind of scrutiny that comes with a possible new product category. Apple has not confirmed it, but reports and leaks suggest the company will show its first foldable iPhone after years of speculation.
The reports say the foldable would cost somewhere around $2,000 to $2,500 and would likely open like a passport. Nabila Popal, senior research director at IDC, told Reuters that even at $2,500 the device is going to fly off the shelves, because Apple is excellent at creating an aura of exclusivity, luxury and scarcity. She expects the phone to bring Apple more than $45 billion in revenue by the end of next year, even though foldables overall remain a single-digit share of the phone market.
Behind the launch sits a longer story about one of the most closely watched holdings in American investing. Warren Buffett first bought Apple shares in 2016, and the position has grown into the largest in Berkshire Hathaway's portfolio. It makes up nearly 22% of the conglomerate's equity holdings, which total roughly $263 billion.
Berkshire put about $35 billion into Apple between 2016 and 2018. According to Buffett, as quoted by Business Insider, that stake swelled to around $185 billion before tax, counting dividends and gains. He added that he didn't have to do a damn thing to get there.
Buffett has sold a major chunk of the holding, yet it remains Berkshire's biggest. Earlier this year he told CNBC he sold too soon, but that he had bought even sooner. He said he would buy more Apple, though not at the market price at the time. He has also joked that Tim Cook, the outgoing CEO, made more money for Berkshire's shareholders than Buffett ever did as chief executive of the iPhone maker.
The opposite experience belongs to Peter Lynch. The veteran investor said in a 2023 CNBC interview that he wished he had not missed Apple's growth. Apple was not that hard to understand, he said, asking how dumb he had been, and he noted the company had a nice balance sheet. He said he should have done the work on a company that was not complicated.
Lynch recalled that his daughter had bought an iPod for $250 and that he had thought Apple must be making a high margin on it. He still did not buy the stock, and he regrets it.
For shareholders, the immediate question is how the stock reacts once the foldable is shown, and whether it can extend the gains of the Cook era under Ternus. This is his first big test in the job.
Bemerkenswerte Zitate
Even with a $2,500 price tag, the Apple foldable is going to fly off the shelves.— Nabila Popal, senior research director at IDC, to Reuters
I sold it too soon. But I bought it even sooner.— Warren Buffett, to CNBC
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