Summary
During the dot.com boom, Buffett and Berkshire were heavily criticized for under-performing. Buffett’s response: “I don’t understand tech valuations.” The Oracle was later vindicated.
Buffett’s first significant foray into technology was IBM in 2011 – an unmitigated flop during his short tenure. I regret to say BRK’s entry into Apple will prove equally disastrous.
It contradicts long-held Buffett principles: Why the risks implicit in Apple’s growth vectors are not in the valuation. iPhones show flat volumes of recent - hardly a “secure moat."
From a deep-dive into the financials and valuation of AAPL (in a novel way), I'll show why the Oracle is stretching for the last pennies on $1 trillion, already bagged.
Munger in 2018 when Buffett bought AAPL: "I’m glad Warren’s still learning." I’ll show you why some key Buffett “golden investment rules” are systematically violated.
This article is daring. Not only do I dispute the wisdom of the world’s greatest investor, but I propose the most successful company in the world is a terrible investment for a buyer of Apple (AAPL) shares today. I denigrate Apple simply by the numbers - get ready for a stone-cold look at the income and valuation metrics in a novel way. I’ve reviewed numerous BRK annual letters and Buffett’s comments to highlight - in point form - where Apple shares violate his axioms.
