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July 18, 2020, 12:31 p.m. EDT

Diversify? Almost half of Warren Buffett’s Berkshire Hathaway portfolio is now composed of a single stock

Berkshire now owns more than $91 billion in Apple shares, representing 43% of the conglomerate’s entire portfolio

By Shawn Langlois, MarketWatch


MarketWatch photo illustration/Getty Images
Warren Buffett for decades famously avoided tech stocks, explaining that he preferred to invest in things he understood.

Warren Buffett once said that “diversification is protection against ignorance. It makes little sense if you know what you are doing.” The take-away: Load up on what you know.

Even if it’s a tech stock, apparently.

A recent peek into Buffett’s Berkshire Hathaway (NYS:BRK.A) (NYS:BRK.B) $214 billion portfolio underscores that the Oracle of Omaha is following his own advice, considering how much stock Berkshire has accumulated in Apple (NAS:AAPL) .

Buffett, thanks to Apple’s stellar run, now owns more than $91 billion’s worth of the iPhone maker, which constitutes 43% of the total Berkshire pie, according to figures cited by the Motley Fool .

As the report points out, there are 46 securities in the portfolio, and if you added them all together — not including the No. 2 holding, Bank of America (NYS:BAC) — they still don’t equal the Apple stake, which proves just how much the big tech names have paced the stock market of late.

Read: He’s 34 years old and owns $550 million worth of Apple

Earlier this year, Buffett explained to CNBC how critical the Cupertino, Calif.–based technology behemoth is to Berkshire’s overall performance. “I don’t think of Apple as a stock. I think of it as our third business,” Buffett said, placing the iPhone maker alongside Berkshire’s wholly owned subsidiaries Geico and BNSF. “It’s probably the best business I know in the world.”

Watch the interview:

Buffett’s Apple position was dinged a bit in Tuesday’s trading session, but it still outperformed the broader market, as the Dow Jones Industrial Average (DOW:DJIA) , S&P 500 (S&P:SPX) and tech-heavy Nasdaq Composite (AMERICAN:COMP) all moved notably lower.

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