Warren Buffett's favourite stock Is soaring in 2025 - And it is not done yet

↑
↑

  //stocks-investing.news-articles.net/content/202 .. k-is-soaring-in-2025-and-it-is-not-done-yet.html
  Published in Stocks and Investing on Saturday, August 23rd 2025 at 21:54 GMT

Warren Buffett’s “Favourite” Stock Is Still On a Winning Streak in 2025 – And It’s Far From Finished

When most people think of Warren Buffett, the first thing that comes to mind is a calm, stoic investor who has a keen eye for undervalued businesses. Yet the financial world’s most celebrated value‑investor has never been shy about proclaiming a single “favourite” stock that drives his portfolio’s performance. According to a recent piece in Financial Express, that stock is Apple Inc., and it is still soaring in 2025 – a trajectory that Buffett says has barely reached its peak.

The article opens with a striking headline: “Warren Buffett’s favourite stock is soaring in 2025 and it is not done yet.” The writer explains that Buffett’s beloved Apple has outperformed almost every other holding in Berkshire Hathaway’s sprawling conglomerate and that the tech giant’s share price has continued to climb at a rapid pace, even in the face of economic uncertainty and global supply‑chain disruptions.

Apple: The Uncrowned King of Buffett’s Portfolio

Buffett’s admiration for Apple isn’t new. Back in 2020, he publicly declared Apple his “best investment” ever after the company’s stock surged 42% in the previous year. At that point, Berkshire held roughly 5.5 million shares, translating to a roughly $20 billion stake. That figure grew in the following years, as Apple’s stock kept ticking up and Buffett’s confidence only deepened.

In 2025, Apple’s market‑capitalisation had crossed the $2.7 trillion mark – a huge leap from the $1.8 trillion Apple commanded at the end of 2023. Even after a modest dip in early 2025, the stock rebounded with a 15‑month up‑trend that, according to the Financial Express article, is driven by a mix of strong earnings, continued product innovation, and the company’s expanding services segment.

Buffett’s strategy is clear: he is not chasing short‑term volatility. He buys Apple at a price he deems fair, holds it for the long haul, and lets the compounding effect of the company’s earnings do the rest. He is often quoted as saying that if you want to win the stock‑market game, “you have to have a good company and a lot of patience.” Apple, for Buffett, ticks every box.

Why Buffett Keeps Holding Apple

The article highlights a few key reasons why Buffett still keeps a massive stake in Apple, even as other firms in Berkshire’s portfolio see more volatility.

1. Strong Cash Flow and Low Debt
   Apple has a robust balance sheet, with over $200 billion in cash and an extremely low debt burden relative to its earnings. That gives Buffett the confidence that Apple can fund future growth without resorting to heavy leverage.

2. Ever‑Evolving Product Ecosystem
   Apple’s product ecosystem – from iPhones and iPads to Apple Watch, AirPods, and the increasingly important services segment (including Apple Music, iCloud, and Apple Pay) – keeps customers coming back. This “ecosystem lock‑in” is a classic Buffett favorite: a business where customers can’t easily switch.

3. Resilient Profit Margins
   Even during the global supply‑chain crunch, Apple maintained a gross margin of 38% in 2024, a figure that’s higher than many other large‑cap tech firms. This is proof that Apple’s pricing power isn’t eroding, a critical factor for Buffett’s “value‑plus‑growth” play.

4. Consistent Dividend Payments
   While Apple’s dividend yield might look modest compared to traditional income stocks, the company’s 2025 dividend payout grew by 20% YoY. Buffett often praises companies that reward shareholders, and Apple’s steady payout trend fits that bill.

2025: Apple’s Performance Amid Broader Market Dynamics

The Financial Express article does a deep dive into Apple’s performance during 2025, especially against the backdrop of a challenging macro environment. In a year marked by geopolitical tensions and fluctuating interest rates, Apple’s share price rose by roughly 28% from the beginning of the year to the time of the article’s publication.

The piece also draws attention to Apple’s quarterly results. For instance, the Q3 2025 earnings report highlighted a 12% YoY increase in revenue driven by the launch of new services and an expansion of the Apple Silicon ecosystem. Moreover, Apple’s net income for the same period surged by 18% YoY, underscoring the company’s ability to maintain profitability even as global tech valuations dip.

Buffett’s patience is key here. Instead of reacting to short‑term market swings, he focuses on the company’s fundamentals and the long‑term trajectory of its product lines.

Berkshire’s Other Holdings: The “Sidekicks”

While Apple is the headline star, Buffett’s portfolio isn’t one‑dimensional. The article gives a quick rundown of other major holdings, including:

• Bank of America – a large financial‑sector holding that provides a steady dividend stream.
• Coca‑Cola – the classic “tenderizer” that offers a stable dividend and a resilient brand.
• American Express – a credit‑card powerhouse that benefits from consumer spending.
• BNSF Railway – a rail freight giant that serves as a long‑term infrastructure play.

These holdings serve as a hedge against the tech‑heavy Apple position. Buffett’s balanced approach, with a mix of growth, value, and income stocks, has earned him a reputation for a diversified yet focused investment strategy.

The Takeaway: Apple Is Still “Not Done Yet”

The core message of the Financial Express article is that Apple, Buffett’s favourite, is still on the rise in 2025. Even as the stock approaches a new all‑time high, Buffett’s unwavering confidence and Berkshire’s disciplined investment philosophy suggest that the company’s upside remains substantial.

Buffett’s stance serves as a reminder that value investing is, at its heart, about long‑term patience and a focus on fundamentals. His approach to Apple exemplifies this: buy quality, hold quality, and let time do its work. In a world of quarterly earnings forecasts and short‑term trades, the 2025 performance of Apple under Berkshire’s stewardship stands as a testament to the enduring power of a well‑chosen, long‑term investment.