Apple: The Legacy’s Core

by

Warren Buffett and Apple Stock

The turning of a page, the quiet closing of a chapter. Warren Buffett, a name synonymous with patient capital, has stepped aside, leaving the helm of Berkshire Hathaway to another. But the true measure of a legacy isn’t in what is changed, but in what endures. And what endures, most prominently, is a substantial devotion to a fruit – not of the orchard, but of silicon and glass: Apple.

To sift through the filings, the additions and subtractions of the portfolio, feels like cataloging the falling leaves – interesting, certainly, but obscuring the enduring structure of the forest. More telling is the weight of what remains, the gravitational pull of those holdings that defined the Oracle’s long watch. And at the very center of that gravity, a company once considered outside the realm of his traditional value investing – Apple.

Upon his departure, Apple constitutes a remarkable nineteen percent of Berkshire’s equity portfolio – a sum exceeding sixty billion dollars. It is a position not merely of size, but of a peculiar insistence. A spring thaw of investment, perhaps, following a long winter of skepticism toward technology. American Express, at seventeen percent, remains a close companion, a familiar face in the landscape. Coca-Cola, a comforting ten percent, and the dependable Bank of America and Chevron following close behind. But it is Apple that stands apart, a singular bloom in a carefully cultivated garden.

Buffett, a man who built his reputation on identifying enduring value in the tangible, the predictable, found himself captivated by a company that thrives on relentless innovation. The irony is not lost on me. He once preferred the solid ground of railways and insurance, now a significant portion of his legacy rests upon a device that fits in the palm of one’s hand. It suggests a recognition, a quiet admission, that the future, however unpredictable, will be shaped by such forces.

A Seed Planted in 2016

The initial stake, taken in 2016, was a hesitant step, a cautious exploration. But it blossomed, nurtured by an understanding that Apple is more than just a manufacturer of devices. It is a creator of ecosystems, a weaver of habits. He spoke of a “sticky product,” an “enormously useful product,” a phrase that, while seemingly simple, reveals a profound insight. It is not merely about functionality, but about integration into the very fabric of modern life. He listed it, alongside the stalwarts of his portfolio, as a “household” name – a testament to its pervasive influence.

Actions, of course, speak louder than words. The modest trimming of the Apple position in his final quarter – a mere four percent reduction – speaks volumes. It was not a retreat, but a refinement, a gentle course correction. Compared to the fifteen percent reduction in the previous quarter, it was a sigh, not a severance.

To depart leaving Apple as a major bet – representing nearly a fifth of the conglomerate’s $300 billion equity portfolio – is a declaration. It is a whisper across the years, a passing of the torch.

The Orchard Will Remain

I suspect Berkshire’s sales of Apple stock in the final quarter were an anomaly, a settling of accounts. With Greg Abel now at the helm, to drastically alter the Oracle’s core holdings would be… imprudent. It would be akin to uprooting a thriving tree in the hope of finding a faster-growing sapling. A more likely scenario is a period of consolidation, a careful tending of the existing garden, with Abel focusing on the operational heart of Berkshire Hathaway.

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Buffett’s track record is extraordinary. Since 1965, Berkshire Hathaway has compounded at an average annual rate of twenty percent, a cumulative return exceeding five million percent. Such returns are, admittedly, unsustainable. But they are a testament to his acumen, his patience, and his ability to identify enduring value.

No investment is without risk, of course. But there is more reason to continue betting on Buffett’s top bet than simply honoring his endorsement. Apple’s business is firing on all cylinders. Revenue rose sixteen percent in the crucial holiday quarter, and earnings per share jumped nineteen percent. With over 2.5 billion active devices worldwide, the company has a long runway to monetize its user base through its high-margin services business. It is not merely a technological marvel, but a cultural force.

The orchard will remain. And in its continued flourishing, a legacy will endure.

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2026-02-19 00:32