Apple Soars, But Berkshire Stalls

$Apple(AAPL.US)$ Apple's share price has hit yet another all-time high.

Despite the escalating value of Berkshire's portfolio, the company's own stock performance has been subdued. $Berkshire Hathaway-A(BRK.A.US)$ 's gained a mere 0.7% on Tuesday, closing at $618,400, with a year-to-date increase of roughly 12.59%. This not only lags significantly behind Apple's gains but also falls short of the $S&P 500 Index(.SPX.US)$ 's 17.5% surge during the same period.

Based on the June 30 book value per share of 425,000 for $Berkshire Hathaway-A(BRK.A.US)$'s ,the current price−to−book ratio stands at approximately 1.45,in line with its five−year average.However, earlier this year in February,Berkshire′s shares neared 650,000, reaching a peak market capitalization, with the price-to-book ratio surpassing 1.6x. This suggests that Berkshire's current valuation may be relatively rational, closer to its historical norms. Moreover, with its equity portfolio accounting for approximately 45% of its $890 billion market cap, and a projected 2024 P/E ratio of 21x, Berkshire appears undervalued by this metric.
While Buffett trimmed his Apple stake by over 10% in the first quarter, Apple remains the cornerstone of Berkshire's portfolio, complemented by key holdings in $Bank of America(BAC.US)$ and $American Express(AXP.US)$ , among others, that contribute to Berkshire's steady progress.