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Warren Buffett Made This Surprising $35 Billion Bet 10 Years Ago, and It Turned into $185 Billion. Is It Still a Buy Today?

www.nasdaq.com · May 6, 2026 · 09:25

Written by Adria Cimino for The Motley Fool->

Buffett is known for favoring long-term investing, holding stocks such as Coca-Cola and American Express for decades.

The billionaire has wowed investors with his record of market-beating performance.

Warren Buffett built a spectacular investing career based on many principles, and a key one is the following: Invest for the long-term. This means buying shares of a quality company and holding on for a number of years. Buffett has proven his commitment to this strategy with many of his top holdings, such as Coca-Cola and American Express. Those heavyweights have held their spot in the Berkshire Hathaway portfolio for decades.

Through this strategy, Buffett helped Berkshire Hathaway beat the S&P 500 over 60 years. The investing giant passed his chief executive officer hat on to Greg Abel at the start of 2026, but this doesn't mean he's no longer present at the company. Buffett remains chairman and goes to the office daily to continue participating in the investing process.

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And just last week, the billionaire sat in the directors' section at the Berkshire Hathaway annual meeting. He took the opportunity to praise the chief of a company he bet $35 billion on a decade ago. It was a surprising investment, considering Buffett's usual strategy, but it turned out to be the right one as it grew to $185 billion.

Now, the question is: Is this stock still a buy today? Let's find out.

First, you may be wondering why I call this particular investment "surprising." This is because the company is a technology player, and Buffett doesn't generally invest in tech companies. Buffett is a keen believer in the idea of investing in what you know and understand -- and that's why he avoids most tech players and favors other industries.

"I'm not going to have an edge on a whole bunch of younger people that have actually grown up with them," Buffett said during an interview with CNBC at the Berkshire Hathaway meeting.

But Buffett considers one company an exception, and that's Apple (NASDAQ: AAPL). The billionaire first bought shares of the tech giant in the first quarter of 2016, and though he cut his position somewhat last year, Apple remains Berkshire Hathaway's top holding. That initial investment of $35 billion has turned into $185 billion, Buffett said during last week's meeting. (This is pre-tax and counting dividends.)

Buffett praised Apple chief executive officer Tim Cook and, in the past, has commented on Cook's excellent management and the company's strong moat, or competitive advantage. At a Berkshire Hathaway annual meeting a few years ago, the investing giant said: "I don't understand the phone at all, but I do understand consumer behavior."

Recent sales data confirms Buffett's knowledge of the consumer: Apple's iPhone 16 was the top-selling smartphone last year, according to Counterpoint Research, and seven of the top 10 phones were iPhones.

And in the latest quarter, Apple continued to show its strength. The company reported earnings that beat analysts' estimates in that period and also topped estimates with its revenue guidance for the current quarter: It expects revenue growth of 14% to 17%, higher than analysts' expectations for 9.5% growth. Meanwhile, services revenue in the latest quarter reached a record high -- as it's been doing quarter after quarter. Considering Apple's massive base of active users, this trend could continue.

Now, let's return to our question. It's clear that Apple has been a great investment for Buffett. But, is Apple still a buy? Of course, Apple shares aren't as cheap as they were back when Buffett originally bought them. But they remain reasonably priced considering the following points.

Apple has a long track record of earnings growth and a solid brand moat. These are elements you can count on. In addition to this, Apple's services as well as its rollout of artificial intelligence (AI) features may serve as growth drivers in the coming quarters. The company also has reached a key transition point, as Tim Cook takes on the executive chairman role and hands over the CEO job to John Ternus.

The upcoming CEO, who currently is senior vice president of hardware engineering, could bring interesting product expertise to the role -- and that could lead to a new era of innovation.

So, my answer is, yes, Apple still is a great buy today -- for investors who, like Buffett, don't generally invest in tech and for those who do.

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American Express is an advertising partner of Motley Fool Money. Adria Cimino has positions in American Express. The Motley Fool has positions in and recommends American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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