Warren Buffett first recognized the appeal of iconic consumer‑technology leader Apple (NASDAQ: AAPL) in 2016 after watching a close friend grow frantic over a misplaced iPhone.
It certainly made an impact.
Over the following years, Buffett increased his stake in Apple, turning it into Berkshire Hathaway‘s (NYSE: BRKA)(NYSE: BRKB) largest equity holding. At its peak, the position represented roughly 40% of the conglomerate’s stock portfolio.
Although Berkshire has trimmed its Apple holdings in recent years, the stock still makes up about 20% of the conglomerate’s approximately $360 billion equity portfolio. A retail investor who invested $10,000 in Apple a decade ago — soon after Buffett began buying — would now see that stake worth roughly $122,400, assuming dividends were reinvested.
The best hardware and a share cannibal
Buffett has consistently shown a talent for spotting companies that can steadily profit from strong brands. Among Berkshire’s long‑term holdings are Coca‑Cola, American Express, and Alphabet, all positions he originally established.
A strong brand entails more than advertising; it creates durable competitive advantages that translate into pricing power. In the consumer‑technology and hardware arena, few competitors match the strength of Apple’s brand.
The firm has introduced groundbreaking products ranging from the iPhone to AirPods and the Apple Watch, each securing a substantial share of its respective market.
Counterpoint Research reports that in the second quarter Apple accounted for 54% of the U.S. smartphone market based on OEM shipment share, a figure unchanged from the prior year though subject to quarter‑to‑quarter fluctuations.
On a worldwide basis, Apple’s smartphone share stands at 21%, just shy of Samsung’s 23%.
Another trait that likely appeals to Buffett and the Berkshire team is Apple’s shareholder‑friendly approach.
Under former CEO Tim Cook, Apple executed share buybacks totaling hundreds of billions of dollars, reducing the outstanding share count and thereby increasing each remaining shareholder’s stake while boosting earnings per share.
According to Motley Fool research, Apple repurchased approximately $755 billion of its own stock between 2016 and the close of 2025.
As noted, a $10,000 investment in Apple made ten years ago, with dividends reinvested, would today be worth about $122,400, reflecting the company’s robust product innovation and substantial capital returns to shareholders.
AAPL data by YCharts.
Can Apple repeat its past‑decade performance and achieve comparable growth over the next ten years? It seems unlikely, given that as firms expand and dominate larger portions of their industries, their growth rates tend to slow. Today Apple ranks as the world’s second‑largest company, with a market capitalization of roughly $4.9 trillion.
This does not imply that Apple lacks growth prospects. The newly appointed CEO, John Ternus, evokes aspects of the late Steve Jobs, given his background in hardware.
A key question for Apple is how it can better capitalize on the artificial intelligence revolution. Unlike many of its large‑tech peers, Apple is not allocating hundreds of billions of dollars to construct AI data centers.
Nevertheless, Apple is poised to play a significant role in delivering AI to consumers via its smartphones and other devices.
CNBC recently noted that numerous developers crafting AI applications with tools like OpenClaw often choose to run on Mac Mini or Mac Studio systems rather than the cloud, citing lower costs in certain scenarios and the portability of these machines.
Apple has recently released updated Mac Mini and Mac Studio models equipped with more powerful chips aimed at developers working on AI applications. This type of product development should benefit the company, and it underscores Apple’s potential role in the AI revolution.
Furthermore, Apple’s decision to forego massive investments in AI data centers may appeal to investors concerned that the huge expenditures by hyperscale providers might not generate sufficient returns.
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