Warren Buffett's BIGGEST Investment Just Posted RECORD Results!

Uh, we would have, uh, one of the fellows in the office has about 10 million shares, and I have for Berkshire's account about 123 million. So we got about 133 million shares—one of them bought, and then you, as a result, bought some additional. One of them had 10 million shares, and then I bought another 123 million shares or something like that. Why? Because I liked it.

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Well, it was back in 2016 when Warren Buffett first started adding Apple shares to Berkshire Hathaway's stock portfolio. Um, originally in 2016, he bought 10 million shares, but since then he has added to that position very substantially, and now he's invested more than 36 billion dollars into Apple. But, uh, boy oh boy, what a position that's turned out to be. At the start of 2021, that position was worth 118 billion dollars to Berkshire, occupying roughly 44% of their portfolio.

And, uh, well, let me tell you, Warren Buffett would be very happy with the earnings result that Apple has just posted a few days ago, because Apple is absolutely crushing it. I did not predict this earnings result, but they're a 2.2 trillion dollar company; they're the second largest company in the whole world, and they're still growing like crazy.

So let me tell you how insane their Q1 results were. But before we dive into that, remember Apple is one of those businesses where, strangely, for the time period of January, February, and March—so Q1, right—they're actually reporting their Q2 2021 earnings. So they're a little bit weird like that. So that's the first thing we have to remember.

The other thing we have to remember as well is that the results for Apple are very seasonal. So instead of looking at just quarter over quarter, that's not really the way to look at Apple's results; it's best to look year over year—so this period versus the comparable period of last year. So that's why we like it; it was very important to look at results year over year as opposed to quarter over quarter.

But still, with that said, check this out—very, very impressive results. Revenue came in at 89.6 billion; that was up 54% year-over-year. If you think about that, they've added 50% to their quarterly revenue versus the comparable period last year. Net income came in at 23.6 billion, up 110% year-over-year. Earnings per share came in at 1.40, up 118% year-over-year.

And these results—I mean, you got to remember this—is the second largest company in the whole world behind Saudi Aramco. Apple is the second largest big behemoth you can get, and usually, big behemoths really struggle to grow because of their size. You can think about it like this: you know how long would it take for a seedling to double in size versus how long would it take for, like, a five-meter tree to double in size? So it's the same thing with companies—the bigger you become, the harder it is to maintain really big growth rates. But clearly, not for Apple.

The thing that gets me is just the raw revenue—I mean, 54% more money flowing into them over the counter versus the same period last year. And Apple actually provided a breakdown as to what caused this, and strap yourselves in because this is pretty insane. So Apple, of course, they have two revenue segments: they first of all got the revenue they make from all their products that they sell and then the revenue from all the services they provide.

And if we start by having a look at the products that they sell—yeah, product revenue was up to 72.7 billion, so it's up 62% year-over-year. You can have a look at some of their products. Um, iPhone revenue was up 66 percent; look at that March period last year with 28.9 billion—this year, 47.9 billion dollars! That is insane.

We can have a look at Mac. Mac had a really good quarter as well; Mac was up 70%, so they went from 5.4 billion up to 9.1 billion this year. iPad, again, a really strong period for iPad as well; from 4.368 billion up to 7.8 billion, so that's up 79 percent year over year. We can also have a look at wearables and accessories—that was up massively as well, from 6.28 billion to 7.836 billion. So that's even—that's just up 25%. So even that is a really good result; it looks small compared to the other ones, but that is seriously impressive.

iPhone up 66% year-over-year, Mac up 70% year-over-year, iPad up 79% year-over-year—insane! And then, of course, there's the smaller part of Apple's business, but one which continues to grow very quickly, and that is, of course, their services business. This can be thought of as kind of the money that people give to Apple just through subscriptions. So services like Apple Music or iCloud or Apple TV—those kind of services.

And even just looking at services revenue, they had another explosive quarter—16.9 billion dollars of revenue, up 287% year over year. So this quarter was seriously something else from Apple. And the crazy thing is I'm not even cherry-picking data because you say, "Hold on, Brandon, February, March last year—that was the start of the lockdown." Okay, but Apple's results in that quarter weren't impacted by the lockdown; they had very normal Q2 results last year.

What they report as Q2—their Q2 results last year—they weren't really out of place when you look at how their results really normally trend. So this quarter really was, as crazy as it sounds, huge growth in products and in services. And I'd love to hear from you guys just why you think that is. I mean, Tim Cook was quick to put it down to consumers loving the new M1 chip and there's renewed faith in Apple's products.

But, I mean, come on—the M1 chip is, I think, only in Macs at the moment. So I'd love to hear what you guys think. Is it people spending stimulus checks on new Apple products, new devices? Hamish was saying on the podcast we spoke about this, saying maybe more people are working from home now, um, and that's the reason why their products and services have gone up so much more. More people working from home means more devices being sold and more subscriptions being sold and that sort of thing.

But I would love to hear from you what you think is causing such a surge in Apple's growth. I mean, to me, it's baffling. It is insane! As I said before, I've said this a couple of times—it's a 2.2 trillion dollar company and they're still growing like crazy. So really we cannot say it's—it's really funny—like the top five biggest companies in the world, are they fairly mature? You know, they pay nice big fat dividends—surely they're not growth stocks; they must be just big behemoths.

But no, it's pretty funny. You know, the Apples, the Googles, Microsofts, and Facebooks—these massive companies are still growing really, really well. So it's pretty, pretty crazy, and this is a very crazy quarter from Apple.

So anyway, let me know what you thought, guys. I hope you enjoyed this video! Leave a like on the video if you did enjoy it or if you found it useful; I really appreciate it. We'll probably have a fair bit more to talk about in the next week or two with earnings, so make sure you stay tuned for all the content that will surely be coming out. I haven't even planned it yet, but I'm sure there'll be lots to talk about over the next couple of weeks.

But anyway, guys, thanks very much for watching. Uh, if you're interested in checking out how I go about my investing—active investing or passive investing—then you can check out Profitful. There's links in the description below, and that also supports the channel. So if you're interested in supporting the channel financially, then that's the way to do it. So I really appreciate it.

But apart from that, guys, thank you very much for watching, and I'll see you all in the next video. Hey guys, thanks very much for watching the video. So every now and again, people reach out to me and ask what stock broker I use for the trading or the investing that I do over in the United States. And for that, the brokerage site that I use is Stake.

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