Warren Buffett’s investment strategy is an example of playing it bold and safe. Nearly $99 billion is tied to two iconic names: Apple and Coca-Cola. Through Berkshire Hathaway, Buffett has funneled as much as half of his stock holdings to Apple alone, and he has held tight to his Coca-Cola shares since the late 1980s.
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His strategy here is simple but powerful: he backs companies with a strong brand and consistent financials. For example, Apple shares are up 31% this year and many see this as Buffett’s smartest move yet. Some say it is his “crown jewel,” praising his foresight in identifying a tech company that has proven to be as resilient as it is profitable.
But like any big bet, Buffett’s heavy dependence on Apple has sparked some debate. Skeptics say putting so many eggs in one tech basket could be risky. With tech stocks, there’s always the threat of changing consumer trends, not to mention the occasional market shakeup.
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And while Apple has posted impressive gains this year, the latest numbers indicate a slight slowdown. In the last fiscal year, Apple’s total revenue fell 0.8% – a small shift, but enough to raise eyebrows. Still, Morgan Stanley analyst Erik Woodring believes Apple has room to climb, setting a price target of $273, which would represent a 20% upside from current levels.
Apple’s shift to services keeps the company stable. While iPhone sales may wax and wane, Apple’s revenue from the App Store, streaming and cloud services has grown 23% in recent years.
Services also helped Apple increase its profit margins, from 43.3% in 2022 to 46.2% in 2024, which caught Wall Street’s attention. These margins and cash flow from services make Apple’s high stock prices easier to swallow, especially since it could mean bigger dividends for shareholders.
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