Warren Buffett Apple investment: At Berkshire Hathaway’s shareholder meeting in Omaha, Berkshire Hathaway chairman Warren Buffett reflected on the company’s massive bet on Apple and the role Cook played in its outcome. Now retired as the company's CEO, at 95 years old he was seated in the front row in a sweater instead of his usual suit, he spoke candidly about how that choice unfolded over time.

Warren Buffett Reflects on Apple Bet at Berkshire Meeting

He looked back at the period between 2016 and 2018, when Berkshire invested about $35 billion in Apple. At the time, Cook had already been CEO for a few years, but Buffett noted that he wasn’t widely known among investors, especially compared to Steve Jobs, whom he succeeded in 2011, as per a report.

How Berkshire’s $35 Billion Apple Investment Began

For Buffett, the investment wasn’t just about the business, it was about the person leading it. He described it as effectively putting over 10% of Berkshire's resources to a person "not that well known at the time," as quoted by Business Insider.

The results, he pointed out, have been significant. That $35 billion investment has grown to around $185 billion before tax, including dividends and gains, Buffett added that, "And I didn't have to do a damn thing," as quoted in the report.

Buffett’s Bet Was on Tim Cook, Not Just Apple

He said, "When we made our investment and turned over 10% of the resources of Berkshire, we were turning it over for Tim, and I say he's turned that into $185 billion or something pretax," adding that he "won't bother to compare his record to that," as quoted by Business Insider.

Why Buffett Let Apple Manage the Money

Buffett pointed out that Berkshire had turned over management of the money to Apple to make itself "look good," and that was its "preferred way of operating," as quoted by Business Insider.

Apple’s Massive Growth Under Tim Cook

He acknowledged the scale of what Cook has overseen, with Apple’s market value rising from about $350 billion to $4.1 trillion during his time as CEO.

Why Apple Remains Berkshire’s Largest Holding

Even after Berkshire reduced its stake in recent years, Apple remains its largest holding, a sign of continued confidence.

Why Buffett Asks Tim Cook to Take a Bow

As Cook, who will be stepping down as Apple's CEO, and Apple marked its 50th anniversary recently, Buffett turned the moment into recognition. He shared that Cook "succeeded a legend" when he had taken over as CEO from Apple's cofounder Steve Jobs in late 2011, only a "very few percentage points of American investors had even heard" of Cook.

Since Cook took over as Apple's CEO, he has helped scale Apple's manufacturing and distribution of iPhone, improving its global supply chain and also expanding to China.

Buffett then said, "So I think it's appropriate if Tim would take a bow and our shareholders would say thanks to him," as quoted by Business Insider.

FAQs

What did Warren Buffett say about Tim Cook?
He credited Cook for turning Berkshire’s Apple investment into a massive success.

How much did Berkshire invest in Apple?
About $35 billion between 2016 and 2018.