Key Points
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Warren Buffett and Greg Abel both aim to choose quality businesses and hold onto them for the long term.
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This company is a market giant with a tremendous competitive advantage.
- 10 stocks we like better than Apple ›
Warren Buffett led Berkshire Hathaway to six decades of market-beating returns thanks to his ability to choose quality companies and hold onto them for the long term. Buffett often made significant bets on a handful of players and stuck with them. For example, companies such as Coca-Cola and American Express have been among his leading positions for years.
Buffett retired at the end of 2025 and handed over the investment reins — the chief executive officer position — to Greg Abel. The billionaire carefully selected Abel, who already played a key role at the company as vice chairman of non-insurance business operations. And Abel pledged to continue on the Buffett-established track: favoring quality businesses, getting in at reasonable prices, and sticking with them over time.
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Today, Abel has 68% of Berkshire Hathaway’s portfolio invested in just five stocks. Here’s my top pick for September.
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Berkshire Hathaway’s top five stocks
So, first, a quick look at the Berkshire Hathaway portfolio‘s five biggest positions, in order. They are Apple (NASDAQ: AAPL), American Express, Coca-Cola, Alphabet, and Bank of America. Each of these companies has been a major holding for years, with the exception of Alphabet. Buffett first bought that stock last year, and Abel significantly added to the position this year, showing a growing belief in the tech company’s long-term prospects.
Now, of these five companies, which one is a top pick this month? The answer to that question is smartphone giant, Apple. The company, already a Buffett favorite as the company’s No. 1 holding, is entering a particularly interesting period. John Ternus took over as CEO at the start of the month from Tim Cook. Cook did a tremendous job over 15 years, leading Apple through a period of many successes, including the quadrupling of revenue and the launching of key products such as the Apple Watch.
AAPL Revenue (Annual) data by YCharts
In recent quarters, though, Apple was slower to lean into artificial intelligence (AI) than other tech companies. Apple disappointed some investors when it delayed the release of the newest version of its virtual assistant Siri — the launch, now expected this month, could highlight Apple’s AI capabilities and offer the company a big boost in the AI market.
And speaking of this month, September generally represents a key moment for Apple as it is when the tech giant announces important product launches. In fact, Apple is hosting a launch event on Sept. 9, and investors are expecting the release of Apple Watches and iPhones, along with the Siri update (Siri AI) and the company’s first-ever folding phone.
A focus on product innovation
The event also offers Ternus the opportunity to share his vision with Apple fans and investors. Ternus, who was senior vice president of hardware engineering prior to becoming CEO, has a solid engineering and product background — elements that support a focus on product innovation. This suggests that Apple could possibly be entering a fresh era of product development, something that may pave the way to additional growth drivers down the road.
All of this is very positive for Apple and its investors moving forward and could add to momentum in September. Of course, before buying a stock, it’s important to consider valuation. Apple, trading at 36x forward earnings estimates, isn’t at its cheapest.
But the stock isn’t ridiculously expensive considering what the company has to offer: Apple has an extremely strong moat, or competitive advantage, with fans generally sticking to the iPhone or other Apple products over time. This customer base has created an enormous opportunity for recurring revenue through the selling of services like digital storage and entertainment — services revenue has reached records quarter after quarter in recent times. Finally, Apple offers investors stability thanks to this loyal customer base and the opportunity for growth due to its innovation and presence in areas such as AI — even if it’s been a late adopter.
All of this makes Apple — a stock long backed by Buffett and also approved by Abel — my top pick for September.
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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Adria Cimino has positions in American Express. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
