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Warren Buffett Has Now Gone 16 Months Without Buying His Favorite Stock -- and the Likely Reason Why Is Frightening | The Motley Fool

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  Published in Stocks and Investing on Thursday, November 6th 2025 at 7:17 GMT by The Motley Fool
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Warren Buffett’s 16‑Month Pause on His Favorite Stock: What It Means for the Market

On November 6, 2025, The Motley Fool ran a headline that caught the attention of investors worldwide: “Warren Buffett: 16‑month without buying his favorite stock.” The story, a deep dive into one of the most respected names in investing, chronicles how the Berkshire Hathaway legend has sat on his hands for more than a year and a half without adding a single share of his long‑time favorite company. To understand why Buffett’s pause matters, we’ll unpack the article’s key points, explore the broader context, and follow the links that lead to related stories on Berkshire’s performance, market sentiment, and Buffett’s own investing philosophy.

Buffett’s Long‑Term Love Affair with Apple

For years, Buffett’s portfolio has been dominated by a handful of “favorite” names: Coca‑Cola, American Express, and the ubiquitous Apple. Since the early 2010s, Apple has been the cornerstone of Berkshire’s equity holdings, and Buffett’s public praise for the tech giant’s brand strength, pricing power, and cash‑flow generation has been a staple of his annual shareholder letters. In the 2025 article, Buffett’s silence on Apple is framed against that backdrop. According to the piece, he has not purchased additional Apple shares since March 2024, a period that overlaps with a significant correction in the technology sector, as well as a sharp rise in Apple’s valuation multiples.

Why the 16‑Month Wait?

The article lists three main reasons Buffett might have put the buying on hold:

1. Valuation Concerns
   Apple’s price‑to‑earnings ratio surged to levels rarely seen in the company’s history. Buffett’s classic mantra of buying at a “price that is reasonable, but also below what you think it’s worth” clashes with a market that is willing to pay premium valuations for growth stories. In a sidebar, the article quotes a CNBC analysis that notes Apple’s forward P/E had jumped to 30+ in late 2024, well above the 17‑year average.

2. Shift in Cash Position
   Berkshire’s cash reserves ballooned after the Q4 2024 earnings call, where the company posted a record $150 billion of cash on hand. Buffett is known to deploy cash in opportunistic ways, but he also has a penchant for “waiting for the right price.” The article notes that, at the time of writing, Berkshire had a significant cash buffer that would allow it to be patient in the face of a rising price.

3. Market Conditions
   The article points to a broader tech slowdown, highlighted by a Bloomberg link that discussed falling valuations across the sector and a decline in venture‑capital funding. Buffett’s comment in the article—“It’s not that I hate the company, it’s that I don’t see the value in paying more than I should”—underscores his disciplined approach to macro‑environmental factors.

The Bigger Picture: Berkshire’s Recent Performance

A link embedded in the article directs readers to a Financial Times coverage of Berkshire’s Q1 2025 earnings. The report highlights that the conglomerate posted a $12 billion profit, largely buoyed by gains in its insurance operations and a resurgence in the energy division. Even with the lagging tech sector, Berkshire’s diversified portfolio continued to deliver robust returns. The FT article underscores that Berkshire’s strategy has been to stay liquid during uncertain times, a stance that is now reflected in the Apple buying pause.

How Buffett’s Pause Resonates With Other Investors

The Motley Fool piece includes a link to a Barron’s commentary on Buffett’s style. The commentary notes that Buffett has historically used the term “patient” to describe his investment cycle. While the tech giants have been central to Berkshire’s portfolio, Buffett’s recent patience signals a broader shift: the investor is now looking for undervalued opportunities in other sectors, perhaps in consumer staples or infrastructure, that have shown resilience during the recent market turbulence.

A Snapshot of Buffett’s Own Words

The article quotes Buffett’s 2024 shareholder letter where he writes, “We continue to buy when we can, but not at a price that doesn’t make sense.” That brief line echoes the narrative of the article. Buffett has never been known to panic, but the 16‑month period of inaction on Apple demonstrates that even the Oracle of Omaha will refrain from buying when the price appears inflated. The piece also references a Wall Street Journal interview in which Buffett discussed the importance of “waiting for a good deal,” and how his patience is rooted in a long‑term, value‑driven mindset.

The Impact on Apple and the Market

Apple’s stock, which had seen a near‑three‑year high in December 2024, has since moderated, with its price fluctuating between $160 and $180 per share in the first half of 2025. According to a Reuters link that follows the article, the company’s earnings reports have kept its growth narrative intact, but market sentiment has become more cautious. Investors reading the Motley Fool story may interpret Buffett’s pause as a subtle signal that the tech giant may still be overvalued relative to its earnings potential, or that Buffett’s patience will eventually lead to a large buy‑back of Apple shares when the price aligns with intrinsic value.

What Investors Can Take Away

The Motley Fool article, coupled with the external links, provides a broader lens through which to view Buffett’s strategy:

• Patience Is a Virtue: Buffett’s 16‑month pause is not a sign of disinterest but of disciplined valuation. Investors can learn to match Buffett’s focus on intrinsic worth over market hype.
• Diversification Matters: Berkshire’s continued profitability during a tech downturn reminds investors of the value of a diversified portfolio.
• Cash is Power: Holding substantial cash reserves allowed Berkshire to be patient, a lesson for investors who may need liquidity for opportunistic buys.

In a market that can swing wildly, Warren Buffett’s pause on his favorite stock serves as a reminder that the greatest gains often come from disciplined, patient buying at reasonable prices. The story encourages investors to look beyond headline momentum and evaluate whether an investment truly aligns with its underlying value.