Buffett's Apple Bet: How Tim Cook Turned $35 Billion into Berkshire's Gold Mine

Warren Buffett, the Oracle of Omaha, rarely doles out praise as lavish as that he reserved for Apple CEO Tim Cook at Berkshire Hathaway’s 2025 shareholder meeting. Buffett declared that Cook had “made Berkshire a lot more money than I’ve ever made Berkshire Hathaway,” a statement that underscores Apple’s monumental role in the conglomerate’s financial trajectory. Over the past decade, Cook’s leadership transformed Apple’s stock into Berkshire’s cash engine, turning a $35 billion initial investment into a $173 billion stake by late 2023—a 400% return. Even after Berkshire sold two-thirds of its Apple shares in 2024, the remaining $62 billion stake remains its single largest holding.

The Growth Machine: Tim Cook’s Apple Legacy

Cook’s tenure as CEO since 2011 has been a masterclass in capitalizing on Apple’s ecosystem. Under his guidance, Apple’s split-adjusted stock price skyrocketed from under $15 to $205—a 14-fold increase—driving its market capitalization past $3 trillion. Buffett highlighted this achievement, stating, “Nobody but Tim could have developed [Apple] like it has.” This growth wasn’t just about hardware; Cook pivoted Apple toward services (like Apple Music and the App Store), which now contribute over 20% of revenue, ensuring recurring cash flows that Berkshire’s value-investment model adores.

The **** tells the story: a steady ascent through product cycles (iPhone 16, Apple Watch Series 10) and innovations like in-house chips and AI integration. Even as Berkshire trimmed its stake, Cook’s focus on high-margin products and global brand loyalty kept Apple’s moat widening.

The Strategic Sale: Why Berkshire Cut Ties—But Not Ties Completely

Berkshire’s decision to offload 67% of its Apple shares in 2024—reducing holdings from 900 million to 300 million—was framed as portfolio rebalancing, not skepticism. The remaining $62 billion stake still accounted for 28.1% of Berkshire’s equity portfolio, making it the largest holding despite the reduction. Buffett emphasized that the sale allowed Berkshire to redeploy capital into sectors like consumer staples (e.g., a $25 billion bet on Domino’s Pizza) and utilities, while still retaining Apple’s steady cash flow.

The move also reflected Berkshire’s evolving risk posture. With a record $347.7 billion cash pile, Buffett cited tax considerations and geopolitical risks (e.g., U.S.-China trade tensions) as factors. Yet, he left no doubt that Apple’s ecosystem—bolstered by services growth and proprietary technologies—remains a long-term winner.

Buffett’s Endorsement: Beyond Numbers to Vision

Buffett’s praise went beyond financial metrics. He compared Cook to Steve Jobs, Apple’s co-founder, stating, “Nobody but Steve could have created Apple, but nobody but Tim could have developed it like it has.” This acknowledgment places Cook’s legacy in rarefied air, acknowledging his ability to sustain innovation while Jobs’ vision laid the groundwork.

Crucially, Apple’s success under Cook directly fueled Berkshire’s equity returns. As of March 2025, Apple’s $75.1 billion valuation in Berkshire’s portfolio trailed only its investments in American Express (16.8%) and Bank of America (11.2%). Even with Berkshire’s broader portfolio facing headwinds—Q1 2025 operating profit dipped 14% to $9.6 billion—Apple’s resilience stood out.

Challenges and Opportunities Ahead

No investment is without risks. Apple faces supply chain disruptions, antitrust lawsuits, and overvaluation concerns (trading 20% above fair value estimates in late 2024). Yet, Buffett’s confidence stems from Cook’s track record: a 9.4% CAGR in services revenue through 2027 and margin expansion via in-house technologies like the iPhone 16’s custom cellular modem.

The **** reveals Apple’s enduring dominance. Even after trimming its stake, Apple’s weight in Berkshire’s holdings remains unmatched, a testament to its status as a “cash-generating machine” in Buffett’s eyes.

Conclusion: Why Apple Still Anchors Berkshire’s Future

Warren Buffett’s glowing endorsement of Tim Cook isn’t just about past gains—it’s a vote of confidence in Apple’s future. The $35 billion-to-$173 billion journey under Cook proves that even as Berkshire diversifies, Apple’s ecosystem and services-driven model are core to its value proposition.

With Apple’s stock price up 14-fold since 2011 and its services segment thriving, Berkshire’s reduced stake hasn’t dimmed its luster. The conglomerate’s $347.7 billion cash pile and Cook’s innovations—like AI advancements and upcoming product launches—suggest Apple will remain a linchpin of Berkshire’s portfolio for years.

In Buffett’s own words: “Tim Cook has done what few could.” That’s high praise from a man who knows value when he sees it—and he’s seen it in Apple.