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Everyinvestorwishes they bought Apple in the 1990s.
No investor has benefitted from Apples growth as much as Warren Buffett.
Even though the Oracle of Omaha normally doesnt touch techstocks, he made a notable exception for Apple.
Its the largest holding in his portfolio.
Buffett saw a few key details in Apple stockthat made him load up on shares.
Customer Loyalty
Apple is one of the best brands at maintaining customer loyalty.
This advantage gives Apple more pricing power, as consumers will rush to upgrade their iPhones at high prices.
Steve Jobs helped position the company as an innovator that thinks differently.
This perception elevated Apple into a luxury products brand instead of just a company that sells phones and computers.
This customer loyalty helped Buffett view Apple as a consumer goods company instead of a tech company.
This distinction, combined with Apples pricing power, convinced Buffett to load up on shares.
He only bought Apple with the help of Todd Combs, one of Berkshire Hathaways portfolio managers.
Buffett established criteria and wanted Combs to find a stock that checked all of his boxes.
Combs came back to Buffett with Apple stock and the buying began.
Even the proslike Buffett consult other investors and experts to determine the best way to grow their money.
The people you surround yourself with will influence the quality of the answers and solutions you receive.
Buffett did well in putting Combs on the team and it resulted in one of his mostlucrative investments.
The first one was a cheap P/E ratio.
Thats a high P/E ratio relative to the S&P 500 and Buffett wanted something cheaper.
Earnings Growth
Buffetts two additional parameters revolve around earnings growth.
However, retail investors can use this same approach with smaller companies.
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