‘Apple is the best business we own’

Warren Buffett puts Apple at the top of the Berkshire Hathaway's pile

This past weekend is probably the busiest weekend in Omaha, Nebraska out of the whole year. This is due to Berkshire Hathaway’s annual shareholders meeting.

Warren Buffett and Charlie Munger each year open their doors to meet and talk with shareholders. Some say it’s a shareholder meeting like no other. After watching the afternoon two hour Q&A session with the two heads of Berkshire, I’d have to agree.

Apple (AAPL) is Berkshires Hathaway’s largest holding at 5.6% of the overall holding of the company. That includes the privately held company’s they hold. Mr. Buffett said during the Q&A that Apple is the best run company they own. That’s saying a lot. Yet that does not insulate Apple from outside economic conditions. But what it does say is that there is a higher probability that Apple can weather a sizable economic hurricane then most.

Apple has $55 billion plus in cash as of their recent earnings report up from the $51 billion and change reported in 4th quarter 2022. I believe that a company needs a sizable cash reserve in a economic environment like the one we are in today.

So is Apple a buy today?

In my opinion, not yet. I see more downside pressures on consumer spending, manufacturing and credit breakdown ahead. Once we work through those issues, Apple will be at the top of my list of companies to own as will Berkshire Hathaway.

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