$99 Billion Bet: Warren Buffett Invests Heavily In 2 Stocks Expected To Jump 19% And 20%, Wall Street Analysts Predict

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$99 Billion Bet: Warren Buffett Invests Heavily In 2 Stocks Expected To Jump 19% And 20%, Wall Street Analysts Predict
$99 Billion Bet: Warren Buffett Invests Heavily In 2 Stocks Expected To Jump 19% And 20%, Wall Street Analysts Predict

Warren Buffett's investment strategy is a case study in bold and safe play. Nearly $99 billion is pegged on two iconic names: Apple and Coca-Cola. Through Berkshire Hathaway, Buffett has channeled a whopping half of his equity holdings into Apple alone and he's held tight to his Coca-Cola shares since the late 1980s.

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His strategy here is simple but powerful – backing companies with brand strength and consistent financials. Apple's stock, for instance, surged 31% this year and many see this as Buffett's savviest move yet. Some say it's his "crown jewel," lauding his foresight in spotting a tech company that's proven as resilient as it is profitable.

But as with any big bet, Buffett's heavy reliance on Apple has sparked some chatter. Skeptics say putting so many eggs in one tech basket could be risky. With tech stocks, there's always the threat of shifting consumer trends, not to mention the occasional market shake-up.

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And while Apple has shown impressive gains this year, the latest numbers hint at a slight cooling. In the last fiscal year, Apple's total revenue dipped by 0.8% – a small shift but enough to raise eyebrows. Still, Morgan Stanley analyst Erik Woodring believes Apple has room to climb, setting a price target of $273, which would mark a 20% rise from current levels.

Apple's pivot toward services is holding it steady. Though iPhone sales may ebb and flow, Apple's revenues from the App Store, streaming and cloud services have grown by 23% over the past few years.

Services have also helped Apple boost its profit margins, going from 43.3% in 2022 to 46.2% in 2024, catching Wall Street's attention. These margins and the cash flow from services make Apple's high share prices easier to swallow, especially as it could mean bigger dividends for shareholders.

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