Apple and Berkshire: Top Investment Picks for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Fool
- Berkshire's Cash Reserves: As of the latest quarter, Berkshire Hathaway's cash and cash equivalents totaled $378 billion, representing 36% of the company's total market capitalization, providing a robust foundation for future investments despite a 4% decline in stock price year-to-date.
- Apple's Strong Performance: Apple reported fiscal Q1 revenue of $143.8 billion, a 16% year-over-year increase, with iPhone revenue soaring by 23%, indicating strong market demand, even as its stock has dipped 3% since the start of the year.
- Defensive Investment Portfolio: The combination of Apple and Berkshire not only excels in their respective sectors but also offers a solid balance of offense and defense, effectively mitigating risks amid increasing market volatility.
- Future Growth Potential: Apple's services segment boasted a gross margin of 75.4% in fiscal 2025, expected to drive long-term earnings growth, while Berkshire must carefully manage its substantial cash reserves to ensure effective capital allocation.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple Surpasses 2.5 Billion Active Devices
- Record Device Base: CEO Tim Cook announced during the Q1 2026 earnings call that Apple has surpassed 2.5 billion active devices, a milestone that underscores the company's extensive consumer reach and solidifies its market position.
- Significant Services Revenue Growth: CFO Kevan Parekh reported that Apple's services revenue hit an all-time high of $30 billion, reflecting a 14% year-over-year increase, which not only enhances the company's revenue mix but also lays a strong foundation for future growth, especially in the competitive landscape of artificial intelligence.
- Buffett's Sell Signal: Despite Berkshire Hathaway's investment in Apple yielding a remarkable 1,040% gain since Q1 2016, Warren Buffett has sold shares in six of the last eight quarters, reducing holdings from over 900 million to 238 million, indicating concerns over current valuations.
- Caution for Investors: With Apple's price-to-earnings ratio at 34.1, analysts suggest that while the company remains competitive, Buffett's selling may signal a decline in the attractiveness of investment opportunities, prompting investors to carefully evaluate before purchasing.
See More
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- Design Team Integration: The acquisition of Jony Ive's design startup last year aims to enhance the design quality of OpenAI's consumer hardware products, potentially leading to innovations in its future product lines.
- Patent Leak Insights: A recent patent filing in China reveals that OpenAI's consumer hardware product is internally dubbed “Sweetpea” and is expected to be marketed as “Dime,” with the public disclosure of this information suggesting an imminent product reveal.
- IPO Preparations: OpenAI is preparing for an initial public offering (IPO) this year, with a potential valuation of $1 trillion, while also working on a $100 billion private funding round, indicating strong appeal in the capital markets.
See More
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- Significant Stake: Under Warren Buffett's leadership, Berkshire Hathaway has built a position in American Express worth over $53 billion, representing 22.1% of its outstanding shares and 16.4% of Berkshire's total equity portfolio, reflecting strong confidence in the company.
- Sustained Investment and Growth: American Express reported a 10% year-over-year revenue increase and a 16% rise in earnings per share in Q4 2025, indicating that its business model resonates with younger consumers, particularly with Gen-Z spending growing by 36%.
- Increased Marketing Expenditure: The company invested $6.3 billion in marketing in 2025, a 75% increase since 2019, which has directly driven higher customer demand and engagement, while also improving credit quality and retention rates.
- Technology-Driven Innovation: American Express is rolling out a cloud-based data analytics model for deeper personalization in its marketing, which is expected to yield better market performance and further solidify its competitive advantage in the financial services industry.
See More
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- Significant Export Growth: Taiwan's exports surged by 69.9% year-on-year in January, reaching $65.77 billion, exceeding the market expectation of 51.9% and setting a new monthly record, indicating robust international demand, particularly for chips and technology products.
- Sustained Growth Momentum: The island has achieved 27 consecutive months of year-on-year export growth, reflecting Taiwan's resilience and competitiveness amid strong global demand for semiconductors and AI applications.
- Surge in Exports to the U.S.: Exports to the United States skyrocketed by 151.8% in January to $21.28 billion, highlighting Taiwan's critical role in the global supply chain and benefiting from the U.S. tariff reduction on Taiwanese goods.
- Optimistic Future Outlook: The finance ministry expects exports to rise between 20% and 27% year-on-year in February, despite the Lunar New Year holiday affecting working days, indicating Taiwan's continued strong performance in the global market.
See More
Japan's LDP Secures Overwhelming Election Victory
- Election Impact: Japan's Prime Minister Sanae Takaichi and her ruling LDP secured a supermajority in the election, controlling over two-thirds of the Lower House, which allows her to freely pursue an agenda of increased spending and suspension of certain food taxes, likely stimulating economic growth further.
- Market Surge: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence and indicating positive market expectations regarding Takaichi's policies.
- U.S. Market Rebound: Major U.S. indexes rebounded post-election, with the S&P 500 rising 1.97% and the Nasdaq Composite climbing 2.18%, driven by strong performances from tech stocks like Nvidia and Oracle, which bolstered global investor confidence.
- Private Credit Concerns: The private credit market faces renewed uncertainty as AI pressures software companies, raising investor concerns about borrower business models and potentially increasing default risks, which could impact overall financial stability.
See More
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- Surge in Downloads: Amid the diplomatic crisis triggered by Trump's remarks on Greenland, the Danish app “Made O’Meter” saw approximately 30,000 downloads in just three days, indicating a strong consumer response to boycotting American products and highlighting the direct impact of political events on consumer behavior.
- User Preference Settings: The app allows users to set preferences such as “No USA-owned brands” or “Only EU-based brands,” utilizing artificial intelligence to identify and analyze multiple products simultaneously, thereby enhancing user experience and strengthening market competitiveness.
- Market Competition: Another Danish app, “NonUSA,” surpassed 100,000 downloads at the beginning of February, indicating a sustained consumer interest in boycotting American products, which may encourage the development of more similar applications and further diversify the market.
- Platform Availability: Both apps are available for download on Apple and Google’s app stores, underscoring the significant role of digital platforms in driving consumer behavior and market trends while providing developers with vast market opportunities.
See More
Apple Surpasses 2.5 Billion Active Devices
- Record Device Base: CEO Tim Cook announced during the Q1 2026 earnings call that Apple has surpassed 2.5 billion active devices, a milestone that underscores the company's extensive consumer reach and solidifies its market position.
- Significant Services Revenue Growth: CFO Kevan Parekh reported that Apple's services revenue hit an all-time high of $30 billion, reflecting a 14% year-over-year increase, which not only enhances the company's revenue mix but also lays a strong foundation for future growth, especially in the competitive landscape of artificial intelligence.
- Buffett's Sell Signal: Despite Berkshire Hathaway's investment in Apple yielding a remarkable 1,040% gain since Q1 2016, Warren Buffett has sold shares in six of the last eight quarters, reducing holdings from over 900 million to 238 million, indicating concerns over current valuations.
- Caution for Investors: With Apple's price-to-earnings ratio at 34.1, analysts suggest that while the company remains competitive, Buffett's selling may signal a decline in the attractiveness of investment opportunities, prompting investors to carefully evaluate before purchasing.
See More
OpenAI's First AI Earbuds Expected This Year
- Product Launch Anticipation: OpenAI is set to launch its first AI earbuds this year, although its more complex smartphone-like device has been delayed due to surging memory chip prices, which may impact its competitive positioning in the market.
- Design Team Integration: The acquisition of Jony Ive's design startup last year aims to enhance the design quality of OpenAI's consumer hardware products, potentially leading to innovations in its future product lines.
- Patent Leak Insights: A recent patent filing in China reveals that OpenAI's consumer hardware product is internally dubbed “Sweetpea” and is expected to be marketed as “Dime,” with the public disclosure of this information suggesting an imminent product reveal.
- IPO Preparations: OpenAI is preparing for an initial public offering (IPO) this year, with a potential valuation of $1 trillion, while also working on a $100 billion private funding round, indicating strong appeal in the capital markets.
See More
Berkshire Hathaway Boosts American Express Stake to $53 Billion
- Significant Stake: Under Warren Buffett's leadership, Berkshire Hathaway has built a position in American Express worth over $53 billion, representing 22.1% of its outstanding shares and 16.4% of Berkshire's total equity portfolio, reflecting strong confidence in the company.
- Sustained Investment and Growth: American Express reported a 10% year-over-year revenue increase and a 16% rise in earnings per share in Q4 2025, indicating that its business model resonates with younger consumers, particularly with Gen-Z spending growing by 36%.
- Increased Marketing Expenditure: The company invested $6.3 billion in marketing in 2025, a 75% increase since 2019, which has directly driven higher customer demand and engagement, while also improving credit quality and retention rates.
- Technology-Driven Innovation: American Express is rolling out a cloud-based data analytics model for deeper personalization in its marketing, which is expected to yield better market performance and further solidify its competitive advantage in the financial services industry.
See More
Taiwan's Exports Hit 16-Year High Amid AI Demand
- Significant Export Growth: Taiwan's exports surged by 69.9% year-on-year in January, reaching $65.77 billion, exceeding the market expectation of 51.9% and setting a new monthly record, indicating robust international demand, particularly for chips and technology products.
- Sustained Growth Momentum: The island has achieved 27 consecutive months of year-on-year export growth, reflecting Taiwan's resilience and competitiveness amid strong global demand for semiconductors and AI applications.
- Surge in Exports to the U.S.: Exports to the United States skyrocketed by 151.8% in January to $21.28 billion, highlighting Taiwan's critical role in the global supply chain and benefiting from the U.S. tariff reduction on Taiwanese goods.
- Optimistic Future Outlook: The finance ministry expects exports to rise between 20% and 27% year-on-year in February, despite the Lunar New Year holiday affecting working days, indicating Taiwan's continued strong performance in the global market.
See More
Japan's LDP Secures Overwhelming Election Victory
- Election Impact: Japan's Prime Minister Sanae Takaichi and her ruling LDP secured a supermajority in the election, controlling over two-thirds of the Lower House, which allows her to freely pursue an agenda of increased spending and suspension of certain food taxes, likely stimulating economic growth further.
- Market Surge: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence and indicating positive market expectations regarding Takaichi's policies.
- U.S. Market Rebound: Major U.S. indexes rebounded post-election, with the S&P 500 rising 1.97% and the Nasdaq Composite climbing 2.18%, driven by strong performances from tech stocks like Nvidia and Oracle, which bolstered global investor confidence.
- Private Credit Concerns: The private credit market faces renewed uncertainty as AI pressures software companies, raising investor concerns about borrower business models and potentially increasing default risks, which could impact overall financial stability.
See More
Danish Apps Surge in Downloads Amid U.S. Product Boycott
- Surge in Downloads: Amid the diplomatic crisis triggered by Trump's remarks on Greenland, the Danish app “Made O’Meter” saw approximately 30,000 downloads in just three days, indicating a strong consumer response to boycotting American products and highlighting the direct impact of political events on consumer behavior.
- User Preference Settings: The app allows users to set preferences such as “No USA-owned brands” or “Only EU-based brands,” utilizing artificial intelligence to identify and analyze multiple products simultaneously, thereby enhancing user experience and strengthening market competitiveness.
- Market Competition: Another Danish app, “NonUSA,” surpassed 100,000 downloads at the beginning of February, indicating a sustained consumer interest in boycotting American products, which may encourage the development of more similar applications and further diversify the market.
- Platform Availability: Both apps are available for download on Apple and Google’s app stores, underscoring the significant role of digital platforms in driving consumer behavior and market trends while providing developers with vast market opportunities.
See More
