Warren Buffett Retires, Greg Abel Takes Over as CEO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AAPL?
Source: NASDAQ.COM
- Buffett's Retirement: On December 31, 2025, Warren Buffett officially retired, concluding over half a century as CEO of Berkshire Hathaway, during which the Class A shares returned nearly 6.1 million%, setting a strong foundation for his successor, Greg Abel.
- Abel's Investment Strategy: New CEO Abel has pledged to continue Buffett's investment principles, focusing on opportunities with sustainable moats and strong management teams; however, he included Apple as a 'forever' holding in his first shareholder letter, despite its current valuation contradicting Buffett's value investing philosophy.
- Apple's Stock Performance: Apple experienced stagnant sales growth from FY 2022 to FY 2024, with hardware revenues declining despite strong subscription service performance, leading to a price-to-earnings ratio of 33 times, significantly higher than the 10 to 15 times when Buffett began acquiring shares in 2016, indicating a lack of current investment appeal.
- Shareholding Changes: In the nine quarters leading up to Buffett's retirement, Berkshire sold approximately 75% of its Apple shares (around 687.6 million shares), suggesting that while Abel sees long-term potential in Apple, further reductions in holdings may occur due to concerns over high valuations.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 266.430
Low
239.00
Averages
306.89
High
350.00
Current: 266.430
Low
239.00
Averages
306.89
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.
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See More
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