Warren Buffett Says Apple CEO Tim Cook Has Made Berkshire Hathaway 'A Lot More Money Than I've Ever'

Warren Buffett's Berkshire Hathaway, Inc. (BRK-A) (BRK-B) has recently trimmed its stake in Apple, Inc. (AAPL), but the tech giant has remained its most lucrative bet.

At the end of the fourth quarter, Berkshire held 300 million shares of Apple, unchanged from the previous quarter.

Before that, Berkshire resorted to part liquidation for four straight quarters, although the billionaire investor maintained that the divestment had nothing to do with the company's fundamentals.

Berkshire, which typically avoids tech stocks given the firm's obsession with value stocks, took a 10-million position in Apple in 2016, valued at about $1 billion.

A Wall Street Journal report said Buffett's greenlight came despite the company trading at the high end of the price-earnings (P/E) multiple target he set for an S&P 500 stock he was contemplating buying.

Berkshire went on to amass more Apple shares over the years before going on a selling spree. The company's stake in Apple amounted to 2% at the end of the fourth quarter.

It doesn't come as a surprise that Buffett lauded Apple CEO Tim Cook at Berkshire's annual shareholders' meeting on Saturday.

While explaining his thinking behind share repurchases, the billionaire investor said, "Tim Cook has done a wonderful job — I mean, really wonderful job running Apple."

Separately, Buffet acknowledged Cook's contribution to Berkshire's bottom line.

The Oracle of Omaha said, "I am somewhat embarrassed to say that Tim Cook has made Berkshire a lot more money than I've ever made Berkshire."

"I knew Steve Jobs briefly, and Steve, of course, did things that nobody else could have done in developing Apple, but Steve picked out Tim to succeed him, and he really made the right decision," he said.

"Nobody but Steve could have created Apple, but nobody… but Tim could have developed it like it has so."

Apple generates huge dividend income for Berkshire. Assuming Berkshire held all 300 million Apple shares unchanged in the first quarter, it is poised to earn a $78 million windfall in dividend income alone.

A user on X shared statistics on how Apple has beefed up Berkshire's returns. Leaving out 2024, when Berkshire sold Apple shares, the firm would have returned 174% since 2016 with Apple in its portfolio.

Stripping off Apple, the returns are a more modest 142%, underperforming the S&P 500's 168% return.

Apple, often considered an all-weather stock due to its sticky ecosystem and consumer appeal for its hardware products, has been the worst hit by the Trump tariffs, given its China concentration in the supply chain and end market. 

The Fly reported that research firm Phillip Securities on Sunday reduced its price target for the stock to $200 from $236 and maintained a 'Neutral' rating, citing the lower margins due to tariffs.

Apple stock ended Friday's session down 3.74% at $205.35, taking its year-to-date losses to 18%.

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