Billionaire Warren Buffett is one of the greatest stock pickers of all time. The Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) chairman and CEO is heavily invested in Apple Inc (NASDAQ:AAPL), and it might be because Apple has something almost no other company does.
What To Know: Apple makes up 43.5% of the Berkshire portfolio. The Buffett-led firm's next largest holding has less than a 9% weighting, making its Apple position nearly five times bigger than anything else in the portfolio.
Buffett posed an interesting thought experiment Wednesday morning on CNBC's "Squawk Box."
If you are an Apple user and somebody offers you $10,000 to get rid of your iPhone and never buy one again, you wouldn't do it, Buffett said, suggesting the product is far too superior to competing products to give up.
On the other hand, if someone makes the same proposition to get rid of your Ford Motor Co (NYSE:F) vehicle and never buy one again, you would take the $10,000 and go buy a General Motors Co (NYSE:GM) vehicle, he said.
"It's an incredibly valuable utility," Buffett said.
The company is incredibly well run, he said, adding that CEO Tim Cook is "one of the classiest" leaders and one of "the greatest managers" in history, adding he really understands the business.
"We can't develop a business like that so we own a lot of it," Buffett said.
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According to Berkshire's latest regulatory filing, the firm owns more than 915 million shares of Apple, giving Berkshire a 5.8% stake in the iPhone maker. Buffett suggested he has no plans to sell any shares anytime soon. He sold shares around $115 for tax purposes and he called that a "dumb sale."
"We'll never own [another] business that makes so many people happier," Buffett said.
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AAPL Price Action: Apple has a 52-week high of $176.15 and a 52-week low of $124.17.
The stock was up 0.67% at $161.89 at the time of writing, according to Benzinga Pro.
This illustration was generated using artificial intelligence via MidJourney.