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Warren Buffett Keeps Buying Apple Despite Market Decline
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Published in Stocks and Investing on Saturday, November 22nd 2025 at 6:28 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Warren Buffett’s Latest Bet: Apple Keeps Rising in a Slumping Market
In a headline that has already stirred markets, the Berkshire Hathaway boardroom is buzzing with another round of Apple purchases. According to a recent analysis on The Motley Fool, Warren Buffett’s investment giant has continued to amass more shares of the Cupertino‑based tech behemoth—even as the broader market tumbled in November 2025. The move is a stark reminder that Buffett’s famed “buy and hold” philosophy remains unshaken in the face of short‑term volatility.
Buffett’s Enduring Philosophy
Buffett’s strategy has always been simple: buy high‑quality companies at a fair price and hold them for the long haul. He looks for businesses that produce consistent cash flows, pay dividends, and possess a durable competitive advantage—or what he calls a “moat.” Apple, with its unmatched brand loyalty, ecosystem lock‑in, and robust free‑cash‑flow generation, has long fit the bill.
When the 2025 market slide—driven by a tightening monetary policy, supply‑chain jitters, and a fading consumer‑tech boom—hit, Buffett’s Berkshire was not rattled. The article stresses that Buffett’s confidence in Apple is anchored not just in past performance but in the company’s future prospects: continued iPhone growth, services expansion, and the rising role of the Apple Watch and AirPods in the ecosystem.
How Much is Berkshire Buying?
The Motley Fool piece cites Berkshire’s latest 13‑F filing, which reveals a “second tranche” of Apple shares bought in November. While Berkshire’s total Apple holdings now exceed $60 billion, the new purchase amounted to roughly $2 billion in fresh capital. At that time, Apple’s share price was hovering around $170—a level that, according to Buffett’s own analysis, still offers a margin of safety relative to the company’s earnings per share and discounted cash‑flow estimates.
Buffett’s decision to keep pouring money into Apple, even after a sizable portion of the stock had already been acquired in 2023 and 2024, underscores the belief that Apple is still undervalued relative to its fundamentals. The article notes that Berkshire’s shareholding now represents over 5 % of Apple’s market capitalization—a substantial block that has given Buffett’s influence on corporate governance (such as voting on ESG matters) significant weight.
Why Apple Still Appears Cheap
1. Cash Flow Dominance
Apple’s free‑cash‑flow generation remains one of the highest in the S&P 500. Even after the recent downturn, the company still posted $23 billion in free cash flow for Q3 2025, according to its latest earnings report. Buffett likes companies that can comfortably pay dividends, return capital to shareholders, and still invest in growth.
2. The Ecosystem Advantage
Apple’s ecosystem—iOS, macOS, watchOS, iCloud—creates a sticky customer base. The article points out that the average iPhone user buys an iPhone, a MacBook, an Apple Watch, and at least one accessory over their lifetime. That “stickiness” translates to predictable revenue streams that are hard for competitors to replicate.
3. Valuation Gap
While Apple’s price‑to‑earnings ratio sits at roughly 25‑26x—comfortably high for a tech stock—Buffett’s valuation framework focuses on the discount‑cash‑flow method rather than the P/E alone. Using a 10% discount rate and a 10‑year growth forecast of 7–8%, the intrinsic value per share comes in above $190. So, even at $170, Apple still appears to offer a 15% margin of safety.
4. Dividend Stability
Apple has consistently increased its dividend every year since 2012. The current yield, at around 0.7%, is modest, but the real benefit is the growth in the dividend payout, which Buffett sees as a signal of management’s confidence in future cash flows.
Market Context and Buffett’s Reaction
The article notes that the market slide was largely a reaction to a surprise Fed rate hike, concerns over corporate earnings amid rising interest rates, and a correction in the tech sector after a year of extreme valuations. Buffett, however, remains largely unfazed. He reiterated that a market decline is a buying opportunity, not a selling one.
In a recent interview with CNBC, Buffett remarked that “the market’s current slide has actually made Apple a very attractive buy.” The Motley Fool highlights that his approach is consistent with his historic behavior: he keeps buying when quality assets fall below their intrinsic value, even if the overall market is in the red.
Potential Risks
While the article celebrates Buffett’s optimism, it also warns about potential headwinds:
Supply‑Chain Constraints: Apple’s reliance on chip production, especially for its M‑series processors, may expose it to global supply‑chain disruptions. The piece links to a recent Bloomberg story that detailed shortages in critical components.
Regulatory Scrutiny: Apple faces increasing regulatory pressure in the EU and US over App Store practices. A significant change in policy could squeeze margins.
Market Saturation: The smartphone market may reach saturation faster than expected, forcing Apple to accelerate its shift toward services and wearables—a transition that may be slower than Buffett anticipates.
Buffett has historically navigated regulatory risks by maintaining a diversified portfolio. Nonetheless, investors should remain mindful of these variables.
Buffett’s Broader Portfolio: Where Else Is He Sticking?
The article also briefly touches on other Berkshire holdings. Bank of America and Coca‑Cola remain significant positions, each representing about 2 % of Berkshire’s portfolio. Meanwhile, Berkshire has begun to tilt more heavily toward tech-oriented holdings beyond Apple, such as a modest stake in Nvidia, citing AI‑driven growth as a long‑term catalyst. Though smaller in dollar terms, these moves signal Buffett’s evolving stance toward tech opportunities.
Bottom Line: A Lesson for Long‑Term Investors
Warren Buffett’s continued investment in Apple, even amid a market downturn, delivers a clear message: quality, margin of safety, and a long‑term horizon trump short‑term market sentiment. The article underscores that, for Buffett, the market’s temporary pain is a chance to add more shares of a company whose fundamentals remain rock‑solid.
For individual investors, the takeaway is twofold:
- Look Beyond P/E Ratios – Evaluate intrinsic value through cash‑flow analysis, not just headline ratios.
- Embrace Volatility as Opportunity – A dip in the market can create a buying window for high‑quality assets, especially if you share Buffett’s faith in a company’s enduring moat.
In a world where the headlines often revolve around the next rally or correction, Buffett’s unwavering focus on Apple reminds us that a disciplined, fundamentals‑based approach can keep investors ahead of the curve—regardless of the market’s mood swings.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/22/the-1-stock-warren-buffett-keeps-buying-despite/ ]
