Apple Is A Great Business And Already Well-Valued

Summary:

  • Berkshire Hathaway has recently sold a large stake in Apple.
  • Buffett still believes Apple is a wonderful business.
  • When questioned, Buffett explained that he sold partly for tax reasons and partly because cash is ‘attractive’.
  • My analysis suggests that Apple is overvalued.

Woman holds two apples

Chris Stein

Berkshire Hathaway has been reducing its stake in Apple Inc. (NASDAQ:AAPL), selling 119 million shares in the last quarter. During the last annual meeting (May 4, 2024) the first question put to Warren Buffett was directly about

5-Year CAGR 10-Year CAGR
Revenue 8.1% 6.4%
Income 11.9% 7.7%
Cash from Operations 9.8% 4.5%


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