Warren Buffett loves owning Apple stock, which is, by far, the biggest position in Berkshire Hathaway’s portfolio.
Apple stock has declined close to 18% this year with rampant U.S. inflation and rising interest rates worrying investors.
Keith Speights for The Motley Fool:
But Buffett’s high estimation of Apple hasn’t changed one bit. Apple remains, by far, the biggest position in Berkshire’s portfolio. Berkshire bought around $600 million worth of Apple shares in the first quarter of 2022. Buffett stated in an interview with CNBC that he stopped buying only because Apple’s share price rebounded.
Analysts are nearly as optimistic about Apple as they are about Mastercard. All but six of the 38 analysts surveyed by Refinitiv think the stock is a buy or strong buy. None of the analysts recommend selling Apple. The average 12-month price target is 23% higher than Apple’s current share price.
Wall Street’s and Buffett’s sunny views about Apple are based on the company’s underlying business strength. Apple should continue to enjoy solid sales growth thanks to the ecosystem built around the iPhone. The company could also deliver even stronger growth later this decade as augmented reality gains momentum.