Stocks

Buffett's Berkshire Bets Big on Apple and Amazon with Over 40% Portfolio Share

Published March 24, 2024

Warren Buffett, the celebrated investor known for his value investment strategy, has historically avoided following short-lived stock market fads. Instead, he opts for substantial investments in proven companies. His holding company, Berkshire Hathaway, has demonstrated a consistent strategy of holding onto stocks for the long haul. Notably, a significant portion of Berkshire Hathaway's massive $372 billion portfolio is invested in just two influential stocks from the powerful 'Magnificent Seven' group — AAPL and AMZN.

The Heavyweights: Apple and Amazon

Berkshire Hathaway's trust in AAPL and AMZN isn't unfounded. Apple Inc., coded as AAPL in the stock market, is the world's fourth-largest PC vendor, fourth-largest smartphone manufacturer, and holds the title of the world's largest technology company by revenue. As of 2020, Apple's revenue totaled a staggering $274.5 billion, and the company has maintained its status as the most valuable company globally since January 2021.

On the other side, Amazon.com, Inc., referred to with the ticker AMZN, is a dominant player in numerous sectors including e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon is part of the Big Five in the U.S. information technology industry and is known as one of the world's most influential economic engines and valuable brands.

Buffett's Investment Philosophy and the 'Magnificent Seven'

Buffett's investment approach with Berkshire Hathaway has always been about identifying companies with strong economic moats and the potential for enduring success. The 'Magnificent Seven' refers to a group of dominant stocks that include both AAPL and AMZN, along with other leading tech giants. While Buffett has traditionally been cautious with technology stocks, his major stakes in Apple and Amazon prove that he recognizes the longevity and stability these powerhouse companies offer to his investment portfolio.

Buffett, Berkshire, Investment