Warren Buffett’s Apple Bet could Disappoint Over the Next Decade, New Study Suggests (Business Insider) Warren Buffett‘s Apple shares could disappoint in the coming years, according to new research showing the most valuable stocks typically underperform after reaching the top of the market. Dimensional Fund Advisors analyzed the largest 10 US stocks at the start of each decade since 1930. The asset manager found that on average, they outperformed the market by just 0.7% on an annualized basis over the next three years. Moreover, they underperformed by 1.1% over five years and 1.5% over 10 years.
The only reason why Warren Buffett has a big portion of Berkshire's loot invested in Apple stock is this: AAPL is almost all cash due to its huge cash stockpile. Buffett is bearish on the USA right now and the simpliest way for him to invest investors' money in stocks while not really investing the money is with Apple. All that cash -- it's just like owning a CD. Without that cash pile I would doubt Buffett would even touch AAPL stock.