Apple’s Weight Puts Greg Abel’s Berkshire Performance Under the Microscope
Berkshire Hathaway’s six-decade record remains exceptional, but its large Apple holding and cash pile will shape Greg Abel’s prospects as chief executive.
Berkshire Hathaway’s shares compounded at an annualised 19.7% over six decades, compared with the S&P 500’s average annual total return of 10.5%, according to analysis published by Yahoo Finance and The Motley Fool.
The recent record has been less dominant. Berkshire shares rose 236% in the decade to 2 September but trailed the S&P 500’s total return over that period. Greg Abel, who succeeded Warren Buffett as chief executive, now faces the challenge of allocating capital across a US$1.1 trillion enterprise.
Apple remains Berkshire’s largest holding despite substantial trimming that began in late 2023. The position was valued at US$73.8 billion and represented more than 20% of the portfolio in the reported figures, giving Apple an outsized influence on Berkshire’s future results.
Berkshire first bought Apple shares in the first quarter of 2016, and the stock has since risen about 1,140%. Apple’s revenue increased 16.2% year on year over the first nine months of fiscal 2026, ended 27 June. The source article also reported that John Ternus replaced Tim Cook as Apple’s chief executive.
Valuation remains a consideration: Apple traded at a price-to-earnings ratio of 37.2 in the source analysis. Berkshire also held US$365.5 billion in cash and short-term Treasuries as at 30 June, equal to 34% of its market capitalisation. That reserve provides a buffer, but the article argues the company’s scale and cash holdings could make future outperformance harder to achieve.
