Warren Buffett’s Berkshire Hathaway’s Big Apple Bet: $75 Billion Investment

Warren Buffett, the famous investor and head of Berkshire Hathaway, is holding firm on his investment in Apple, which is currently valued at around $75 billion. This decision comes after several rounds of selling off Apple stock earlier in the year. Despite this, Buffett’s confidence in Apple’s future prospects remains strong.

Apple’s recent financial performance has been solid, with revenue growing by 4% year over year to $124.3 billion. The company’s operating margin reached a record 32% over the last 12 months. One key area of growth for Apple is its software services division, which has high margins and is helping drive increased operating leverage. Services revenue jumped from $23 billion to over $26 billion in the last quarter alone.

With consistent share repurchases, Apple has been returning capital to shareholders, resulting in a 110% increase in dividends per share over the last 10 years. While Apple’s hardware business remains stable, growth is primarily being driven by its expanding software services.

Investors might not see Apple stock as a strong buy at the moment, but existing shareholders shouldn’t rush to sell. Holding onto Apple stock, especially purchased at a lower price, could mean benefiting from growing dividend payouts. By delaying selling, shareholders can also put off paying taxes on their investment.

Looking ahead, Apple’s upcoming dividend for the next four quarters will be announced next quarter, with shareholders expecting a slight increase. The most recent dividend paid was $0.25, in February, with the next payable around mid-May. Buffett’s continued investment in Apple reflects his confidence in the company’s ongoing growth and profitability.