Berkshire Bets Big on Apple's Enduring Profits and AI Potential
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Warren Buffett's Berkshire Hathaway has over 50% of its portfolio invested in Apple stock. Apple is generating strong profits and cash flow.
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While Apple's revenue has stalled recently, its services business continues to grow profits. Services have a 70% profit margin.
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Apple's increasing profits allow it to reward shareholders via dividends and buying back stock. Over the long run, Apple has performed very well.
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Apple is investing in artificial intelligence as a new source of growth. The market underappreciates Apple's future AI potential.
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At a forward P/E of 29, Apple offers good relative value compared to other AI stocks. Market conditions may soon improve for Apple.