No investor is more synonymous with long-term success than Warren Buffett. Berkshire Hathaway There's a reason why he's called the “Oracle of Omaha” – he's so good at making the right choices that it's like he can see into the future. He currently manages a portfolio worth $332 billion.
Buffett believes in picking a great business and sticking with it, rather than hunting the market for bargains and trading aggressively. I believe more or less the same. Buffett has said, “When you find a really great business, stick with it. Perseverance pays off.”
One of his best long-term investments remains his largest holding. apple (Nasdaq: AAPL)Berkshire's holdings in the iPhone maker are worth $135 billion, about 41% of the holding company's total portfolio.
Some may question Buffett's faith after he sold 100 million shares of Apple last quarter, about 13% of his Berkshire stake, but as Buffett himself suggested, this was more likely for tax reasons than a loss of faith.
So why does Buffett love Apple so much? Why does he believe it's an “even better business” than his longtime favorite, Apple? coca cola and American ExpressFirst, Berkshire Hathaway has made a lot of money. In addition, it is a great company that continues to grow in value while changing with the times.
Slumping iPhone sales in China are set to bounce back thanks to unexpected strength in India
Global sales are important to Apple. Domestically, smartphone market penetration is over 90%, making it difficult to make a change. Meanwhile, in China and India, penetration is 75% and 40%, respectively. This gives them much more room to grow organically without having to convert Android users.
That's why investors were spooked when Apple reported disappointing first-quarter sales in China. But preliminary data suggests things are looking up: In April, the company reported a 52% increase in sales of foreign smartphones compared to a year ago. Since most Android smartphones sold in China are made in China, “foreign” primarily refers to iPhones.
Recently, Bloomberg reported that Apple's sales in India grew 33% in the 12 months to March. Since much of the attention had been on sales in China, investors were pleasantly surprised by the big increase in a market where Apple had previously struggled.
Keep an eye on China and India sales numbers in Apple's upcoming Q2 report. Continued success in these markets could mean a big increase in revenue, but keep in mind that Apple gained much of this market share by lowering prices. It will be exciting to see how that decision affected the company's margins and bottom line.
If Apple Intelligence proves effective, it could lead to a significant boost in sales in the United States.
Apple was on the sidelines alphabet Apple and other big tech companies have rushed to incorporate artificial intelligence (AI) into their products, which worried many investors, who thought Apple was simply lagging behind. But now, that's starting to look a bit different.
Nearly a year and a half after ChatGPT-3 was made public, Apple has finally announced its own AI product: Apple Intelligence.
Because Apple has built its reputation on quality, it waited until it was sure its AI products were intuitively integrated, truly useful, sophisticated and error-free — something Google might want to consider in the future.
Apple Intelligence hasn't been released to the public yet, so I'll probably have to take back what I said, but I'm confident it will be a success: If it does come to fruition, it could create new demand for Apple products among some iPhone users and, more importantly, among iPhone users who have resisted upgrading.
Apple Intelligence won't work on older products, and only the latest iPhones will get cutting-edge features.
The company continues to evolve, often ushering in or at least perfecting new trends, which is probably why it remains Buffett's biggest bet — and why I still consider Apple a buy.
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American Express is an advertising partner of The Ascent, a Motley Fool. Johnny Rice does not own any stocks mentioned. The Motley Fool owns shares in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The article Warren Buffett has $135 Billion of his $332 Billion Portfolio Invested in These Top Artificial Intelligence (AI) Stocks was originally published by The Motley Fool.
