Warren Buffett's investment in Apple stands out as both his most successful and most precarious move.
Originally cautious about tech stocks, Buffett pivoted to become an ardent supporter of Apple, pouring billions into the company.
Despite initial doubts from Buffett and his partner, Charlie Munger, about Apple's compatibility with their investment strategy, Berkshire Hathaway's significant stake in Apple has yielded massive returns, with a 5.9% share now valued at approximately $157 billion, resulting in an annual return of over 26%.
Buffett's change of heart was influenced by Apple's robust consumer loyalty and potential for increased profitability, particularly evident in the iPhone's impressive customer-retention rate.
However, recent challenges faced by Apple, including antitrust scrutiny and a sales slowdown, have heightened its investment risk. Nevertheless, Buffett's reluctance to divest Apple shares may stem from the difficulty of identifying similarly lucrative investment opportunities for the capital generated.
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