Apple is Berkshire portfolio’s best business: Warren Buffett

“Apple is different than the other businesses we own. It just happens to be a better business,” said Buffett during Berkshire’s annual meeting in Omaha, Nebraska.

Berkshire revealed a $1-billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328-billion equity portfolio.

Buffett has long praised Apple chief executive Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need.

Berkshire has recently held a 5.6% stake in Apple, and Buffett said it could buy more.

Apple results

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Apple reported a 3% revenue fall at $94.84 billion for the second quarter of its financial year 2023 compared with $97.28 billion in the year-ago period dragged down by a slump in Mac and iPad sales.Despite the fall in revenue, the figures beat the Street estimates of $92.96 billion as per data from the market intelligence platform Refinitiv.

Apple follows an October to September financial year.

A 1.5% rise in Apple’s iPhone revenue to $51.33 billion from $50.57 billion showed a contrasting picture compared with the broader consumer electronics industry, which is grappling with a decline in sales of smartphones, tablets and PCs as consumers and businesses — who scooped up electronics during the pandemic — tighten spending amid rising interest rates and economic uncertainty.

“We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” said Tim Cook, Apple’s chief executive officer in an earnings release.