Berkshire Hathaway shares have risen 236% over the past decade, though that performance trailed the total return of the S&P 500 index during that same period.
Over the past six decades, however, Berkshire Hathaway’s stock price compounded at an annualized rate of 19.7%, decisively outpacing the S&P 500’s 10.5% average annual total return.
The long-term track record is so extraordinary that even if Berkshire shares fell 99% tomorrow, they would still have beaten the benchmark over the trailing 60-year period.
Warren Buffett built that legacy, and his successor Greg Abel now controls capital allocation decisions for the massive $1.1 trillion enterprise.
Apple remains Berkshire Hathaway’s single largest public equity holding, accounting for more than 20% of a portfolio currently valued at $73.8 billion.
Berkshire first purchased Apple shares in the first quarter of 2016, and since the start of that year, the consumer technology giant’s stock has climbed an astonishing 1,140%.
Starting in late 2023, the Apple position was trimmed considerably, yet it remains large enough that it will drive a meaningful portion of the overall portfolio’s returns.
Apple shares currently trade at a price-to-earnings ratio of 37.2, and the stock has climbed 19% in 2026, leaving what many analysts would argue is little margin of safety at current valuations.
Despite the valuation concerns, Apple’s underlying business has shown renewed momentum, with revenue increasing 16.2% year over year through the first nine months of fiscal 2026, ended June 27, driven by strong demand for the iPhone 17 family.
Apple also welcomed a new CEO in John Ternus, a company veteran who replaced Tim Cook, whose 15-year tenure saw the stock soar more than 2,200%.
Both Abel and Ternus face the same fundamental challenge: replacing legendary leaders who built track records that are extremely difficult to replicate under any circumstances.
Scale is a central obstacle for Abel’s Berkshire, which is now one of the most valuable companies on the planet and simply cannot grow intrinsic value at the same rate it once did.
As of June 30, Berkshire Hathaway held $365.5 billion in cash and short-term Treasuries on its balance sheet, equal to 34% of the company’s total market capitalization.
That enormous cash pile provides a valuable financial buffer against adverse market conditions, but it also acts as a persistent drag on overall share-price performance.
Apple’s powerful brand, pricing power, loyal customer base, and deeply integrated ecosystem remain compelling reasons why the stock could still generate competitive long-term returns for the portfolio.
