For six decades, Warren Buffett meticulously built Berkshire Hathaway into a global powerhouse. Yet, at the conglomerate’s annual meeting in Omaha, Nebraska, on May 3, 2025, he credited Apple ’s CEO, Tim Cook , with delivering Berkshire’s most lucrative windfall. “I’m somewhat embarrassed to say Tim Cook has made Berkshire a lot more money than I’ve ever made,” Buffett admitted with characteristic humility. In a stunning close to the meeting, the 94-year-old investing legend announced his decision to step down as chairman and CEO, signaling the end of an era.
Buffett’s nod to Cook was quintessential Buffett -- a blend of self-deprecation and a testament to the power of adaptability in investing. His remarks underscored a career defined by disciplined principles and the courage to pivot when evidence demands it.
From Skeptic to Apple Advocate
In 2016, Buffett was no tech enthusiast. He and his late investing partner, Charlie Munger, had long avoided technology stocks, citing the sector’s rapid evolution and their limited grasp of its intricacies. Buffett, famously loyal to his flip phone at the time, was an unlikely candidate to bet big on a tech giant like Apple.
The turning point came when a Berkshire investment manager purchased a modest stake in Apple, nine years after the iPhone’s debut. Around that time, Buffett tasked another manager with identifying an S&P 500 stock meeting strict criteria: a price/earnings multiple of no more than 15 based on the next 12 months’ projected earnings, at least 90% confidence in higher earnings over five years, and at least 50% confidence in a minimum 7% annual growth rate for five years, as previously reported by The Wall Street Journal.
Apple emerged as the standout. Trading at about 14 times expected earnings—near the upper limit of Buffett’s target—it wasn’t a steal, but it wasn’t overpriced either. Some investors had cashed out after early gains, but Buffett saw untapped potential. His grandchildren’s devotion to their iPhones and Apple’s remarkable 95% customer retention rate signaled a moat-like brand loyalty, a hallmark of the businesses Buffett covets.
Berkshire acquired nearly 10 million shares for approximately $1 billion in 2016 and steadily increased its stake. By late 2024, Berkshire held about 2% of Apple, valued at $75.1 billion, making it a top five shareholder. Apple surpassed American Express and Bank of America to become Berkshire’s largest holding.
What Apple Saga tellsBuffett has since reduced Berkshire’s Apple position significantly. The 300 million shares held at the end of 2024 -- down from 900 million a year earlier -- reflect a deliberate paring back, likely driven by portfolio rebalancing or tax considerations. Yet, the Apple investment remains Berkshire’s most triumphant, with gains dwarfing many of Buffett’s other storied bets.
The Apple saga highlights Buffett’s evolution as an investor. Once wary of tech, he embraced a company that married innovation with the consumer loyalty he prized. His ability to reconsider his biases, informed by rigorous analysis and real-world observations, turned a skeptical bet into a historic win.
Warren Buffett’s Exit and Berkshire’s Future
Buffett’s retirement announcement stunned attendees, though succession plans have long been in place. Greg Abel, 62, Berkshire’s vice chairman and Buffett’s designated successor, is poised to take the helm. Abel, who has overseen Berkshire’s non-insurance operations since 2018, is expected to maintain the conglomerate’s disciplined, value-driven approach while navigating a rapidly changing economic landscape.
Buffett expressed confidence in Abel and Berkshire’s enduring culture, built on decentralized operations and a focus on long-term value creation. “This company is bigger than any one person,” he said, reassuring shareholders of its resilience.
Buffett’s nod to Cook was quintessential Buffett -- a blend of self-deprecation and a testament to the power of adaptability in investing. His remarks underscored a career defined by disciplined principles and the courage to pivot when evidence demands it.
From Skeptic to Apple Advocate
In 2016, Buffett was no tech enthusiast. He and his late investing partner, Charlie Munger, had long avoided technology stocks, citing the sector’s rapid evolution and their limited grasp of its intricacies. Buffett, famously loyal to his flip phone at the time, was an unlikely candidate to bet big on a tech giant like Apple.
The turning point came when a Berkshire investment manager purchased a modest stake in Apple, nine years after the iPhone’s debut. Around that time, Buffett tasked another manager with identifying an S&P 500 stock meeting strict criteria: a price/earnings multiple of no more than 15 based on the next 12 months’ projected earnings, at least 90% confidence in higher earnings over five years, and at least 50% confidence in a minimum 7% annual growth rate for five years, as previously reported by The Wall Street Journal.
Apple emerged as the standout. Trading at about 14 times expected earnings—near the upper limit of Buffett’s target—it wasn’t a steal, but it wasn’t overpriced either. Some investors had cashed out after early gains, but Buffett saw untapped potential. His grandchildren’s devotion to their iPhones and Apple’s remarkable 95% customer retention rate signaled a moat-like brand loyalty, a hallmark of the businesses Buffett covets.
Berkshire acquired nearly 10 million shares for approximately $1 billion in 2016 and steadily increased its stake. By late 2024, Berkshire held about 2% of Apple, valued at $75.1 billion, making it a top five shareholder. Apple surpassed American Express and Bank of America to become Berkshire’s largest holding.
What Apple Saga tellsBuffett has since reduced Berkshire’s Apple position significantly. The 300 million shares held at the end of 2024 -- down from 900 million a year earlier -- reflect a deliberate paring back, likely driven by portfolio rebalancing or tax considerations. Yet, the Apple investment remains Berkshire’s most triumphant, with gains dwarfing many of Buffett’s other storied bets.
The Apple saga highlights Buffett’s evolution as an investor. Once wary of tech, he embraced a company that married innovation with the consumer loyalty he prized. His ability to reconsider his biases, informed by rigorous analysis and real-world observations, turned a skeptical bet into a historic win.
Warren Buffett’s Exit and Berkshire’s Future
Buffett’s retirement announcement stunned attendees, though succession plans have long been in place. Greg Abel, 62, Berkshire’s vice chairman and Buffett’s designated successor, is poised to take the helm. Abel, who has overseen Berkshire’s non-insurance operations since 2018, is expected to maintain the conglomerate’s disciplined, value-driven approach while navigating a rapidly changing economic landscape.
Buffett expressed confidence in Abel and Berkshire’s enduring culture, built on decentralized operations and a focus on long-term value creation. “This company is bigger than any one person,” he said, reassuring shareholders of its resilience.
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