Technology Sector Ideas

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Apple - >>> Most investors who follow Warren Buffett know that he is among the most bullish big-time money managers when it comes to Apple (AAPL).


https://finance.yahoo.com/m/b6aa7a04-2450-3273-aae3-a4758c72e87e/want-passive-income-in-a-bear.html


The Oracle of Omaha first bought Apple's stock in 2016, being influenced in his decision by his two deputies, Todd Combs and Ted Weschler. Over the years, Buffett has decried not buying more Apple on dips, providing many such reasons for doing so over the years.

Buffett's view of Apple, as a premium provider of consumer goods to a very loyal clientele, has been on point. Apple's closed-loop ecosystem and focus on quality has led the company to become the leading smartphone provider in the U.S. With over 50% market share in this incredibly powerful segment, Apple has become ubiquitous in most of its key markets. The company's sheer cash flow growth over the years is a testament to the fundamental soundness (or quality) Buffett looks for in his core holdings.

With Apple now comprising approximately 39% of Berkshire Hathaway's portfolio, Buffett is clearly in this position for the long haul. While Buffett has trimmed his Apple position from time to time, his purchases over the years have far outweighed his divestitures, providing Berkshire holders with significant exposure to this world-class gem.

Apple's dividend yield of only 0.6% ($0.92 per share annually) is quite small, relative to the other names on this list. However, this is also a stock that's exploded in value since Buffett started buying in 2016, meaning his realized yield is much higher compared to his base cost than an investor putting fresh capital to work. Indeed, while Apple has raised its dividend distribution over the years, it hasn't quite kept up with its stock price appreciation over time. But for those looking for a mix of passive income and growth, this remains a top pick to consider, in my books.

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