Warren Buffett, the legendary investor who built Berkshire Hathaway into a global investment powerhouse, stunned shareholders this weekend with a dual headline: a heartfelt tribute to Apple CEO Tim Cook and confirmation that he will step down from his role at the end of 2025.
Speaking at Berkshire’s annual shareholders meeting in Omaha on Saturday, Buffett lauded Cook’s leadership as unparalleled, even as he acknowledged that Berkshire has sold about two-thirds of its shares in Apple, long regarded as one of the firm’s crown jewels.
“Tim Cook has made Berkshire a lot more than I have made Berkshire,” Buffett said, drawing warm laughter from the audience. His remark underlined just how transformational Apple’s stock has been for the company. Berkshire invested around $35 billion in Apple between 2016 and 2018; by the end of 2023, the stake had ballooned to roughly $173 billion.
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However, Berkshire began trimming its Apple position in early 2024 and had sold about 67% of its holdings by the end of September. By December, the conglomerate held 300 million Apple shares, valued at about $62 billion at Friday’s closing price of $205 per share.
The sell-off triggered surprise across Wall Street and raised questions about whether Buffett, known for long-term, concentrated bets, was signaling concerns about Apple’s growth trajectory or merely rebalancing Berkshire’s portfolio. He did not directly answer that question but used the opportunity to reiterate his respect for Cook, especially in the context of Apple’s evolution since the era of Steve Jobs.
“I knew Steve Jobs briefly,” Buffett said. “Nobody but Steve could have created Apple, but nobody but Tim could have developed it like it has.”
A Subtle Farewell
The compliments to Cook came in the same breath as Buffett’s own announcement: that he plans to formally step down from Berkshire Hathaway by the end of the year, closing a chapter on one of the most storied careers in financial history.
At 94, Buffett said the decision was about succession and continuity. “It’s time,” he told shareholders. “I’ve done this for nearly 60 years. The future of Berkshire is in very capable hands.”
He confirmed that Vice Chairman Greg Abel, long rumored to be his heir apparent, will take over operational control of the firm. Buffett emphasized that the company’s culture, values, and investment philosophy would remain unchanged.
The timing of the announcement, paired with the Apple divestment, suggested a broader transition underway at Berkshire. Abel has played an increasingly visible role in recent years, particularly in overseeing the company’s sprawling non-insurance businesses. Shareholders had widely expected the move, but it still marked the end of an era.
Apple’s Run Under Cook
Since assuming the CEO role in 2011, Cook has led Apple to extraordinary growth: the company’s stock has risen from under $15 (split-adjusted) to over $200, and Apple has become the first publicly traded company to reach and sustain a market capitalization of more than $3 trillion.
Cook also navigated Apple’s transition from a product-focused company to a services-and-ecosystem-driven giant. Apple’s wearables, App Store, iCloud, and Apple Pay businesses now generate tens of billions of dollars annually, helping the company offset slowing iPhone growth.
Buffett has consistently applauded Cook’s use of Apple’s enormous free cash flow, especially its aggressive share buyback program, which has made each of Berkshire’s remaining shares more valuable.
Why Sell Apple Now?
While Buffett didn’t go into specifics, analysts believe the sale of Apple shares is part of a larger strategic shift to reduce risk exposure and rebalance Berkshire’s portfolio ahead of a leadership transition. Others have speculated that Buffett may be preparing for large-scale philanthropic giving, a process that has already seen him donate billions to the Gates Foundation and other causes.
Some observers also see Apple’s move as a subtle signal about future challenges in the tech sector, including regulatory headwinds, slowing growth, or margin compression due to shifting global supply chains and AI-related competition.
However, Apple remains Berkshire’s largest publicly traded holding, and Buffett made it clear he continues to believe in the company and in Cook.
The End of an Era
Buffett’s departure caps an unparalleled career that transformed a struggling textile mill into one of the most respected investment vehicles in the world. Berkshire Hathaway today owns stakes in dozens of publicly traded companies and outright owns major businesses such as BNSF Railway, GEICO, and Dairy Queen.
Buffett’s disciplined approach, folksy wisdom, and long-term investment philosophy earned him the moniker “Oracle of Omaha.” But as he made clear on Saturday, Berkshire’s next chapter will belong to Abel and a new generation of leaders—and, in the case of Apple, to a CEO he holds in the highest esteem.