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Warren Buffett’s recent comments about Apple and its CEO, Tim Cook, have sparked a wave of conversation across tech and investment communities. As the legendary investor prepares to step down from his role at Berkshire Hathaway at age 94, his remarks not only acknowledge Cook’s role in transforming Apple but also highlight the historic gains Apple has delivered to his firm.
During a heartfelt exchange of mutual respect, Tim Cook expressed deep admiration for Buffett, calling it a “privilege” to have known and learned from him. Buffett, in turn, humbly acknowledged that Apple has earned Berkshire Hathaway more than any other investment in its portfolio’s history—more than even his own strategic stock picks over decades. This landmark admission reflects Apple’s meteoric rise under Cook’s leadership since 2016, when Buffett first began investing heavily in the company.
The Story in Summary – Breakdown
- Warren Buffett, at 94, has announced his retirement from active leadership at Berkshire Hathaway.
- In a shareholder meeting, Buffett openly praised Apple and its CEO Tim Cook.
- He admitted Apple delivered greater returns to Berkshire than any other investment in his career.
4. Berkshire Hathaway’s Apple investment began in 2016.
- Since then, Apple stock has surged by 680%, becoming a major profit driver.
- At its peak, Berkshire held 905 million shares of Apple stock.
- That position was valued at approximately \$174 billion at its height.
- The firm has since reduced its stake in Apple by nearly 70%.
- Buffett acknowledged the visionary foundation laid by Steve Jobs.
- However, he credited Tim Cook for scaling and evolving the company afterward.
- He emphasized Jobs was the only one who could create Apple.
- Likewise, only Cook could have managed its exponential growth and global reach.
- Buffett said Jobs’ decision to pick Cook as his successor was absolutely correct.
- Tim Cook responded warmly on social media, expressing deep gratitude.
- Cook called Buffett’s wisdom an inspiration to countless people.
- He also acknowledged the leadership transition at Berkshire to Greg Abel.
- The praise is seen as a passing of the torch between iconic business figures.
- Buffett’s admission about Apple’s performance stunned even seasoned investors.
- The 680% growth dwarfs many of Buffett’s historical successes.
- Apple’s role in Berkshire’s portfolio has been both strategic and profitable.
- Analysts note that Apple provided safety, growth, and resilience.
- The relationship between Apple and Berkshire Hathaway has become a case study.
- Apple’s consistent innovation and market domination played key roles.
- Buffett’s usually conservative investing philosophy evolved with Apple.
- He acknowledged his early skepticism of tech stocks had to change.
- Apple’s cash flow, dividends, and brand loyalty made it a rare tech pick for him.
- The success story exemplifies smart long-term investing in blue-chip tech.
- Cook’s ability to sustain momentum after Jobs remains highly respected.
- His focus on operations, supply chain, and services revenue have paid off.
- Apple under Cook has transitioned from a product-driven to a platform-based company.
What Undercode Say:
Warren Buffett’s Apple investment is not just a financial success story—it’s a powerful case of adaptability in long-term investing. For years, Buffett avoided technology stocks, citing unpredictability and volatility. Yet when Apple crossed his radar in 2016, it was Cook’s leadership and Apple’s operational discipline that shifted his perspective. That evolution in thinking led to what is now considered one of the most profitable trades in investment history.
Apple’s stock trajectory mirrors the company’s transformation from a hardware innovator to a services and ecosystem-driven giant. Cook may not have Jobs’ mythos, but he delivered what investors crave: stability, growth, and shareholder returns. Services like iCloud, Apple Music, the App Store, and wearables now contribute significantly to Apple’s revenue. These predictable income streams are exactly what value investors like Buffett prize.
The symbolic nature of
For Berkshire, Apple
Beyond numbers, this story reinforces the idea that modern CEOs must blend vision with execution. Buffett didn’t just invest in a company; he invested in Cook’s ability to lead it through innovation, geopolitics, supply chain disruptions, and regulatory shifts. That bet paid off handsomely.
From an analytical lens, this relationship offers valuable insights for both tech analysts and portfolio managers. It challenges outdated notions about tech being too risky for long-term investing. It also underscores that when a company becomes ingrained in consumer habits, it transcends the volatility typical of the sector.
This is more than a story of money. It’s about trust, legacy, and the importance of strategic thinking at the intersection of technology and finance. The Apple-Buffett story will likely be taught in MBA programs and investment courses for years to come.
Fact Checker Results
Apple stock did increase by over 680% since 2016—verified from multiple sources including Nasdaq and Yahoo Finance.
Berkshire Hathaway at its peak owned 905 million Apple shares—confirmed via public shareholder disclosures.
Buffett’s praise for both Jobs and Cook matches quotes from the 2024 Berkshire annual meeting and CNBC reports.
Prediction
As Buffett exits the stage and new leadership takes over at Berkshire, we may see a shift in how traditional investment firms view technology. With AI, mixed reality,
References:
Reported By: 9to5mac.com
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