- Steve Jobs refocused Apple on several key products and paved the way for phenomenal success.
- Warren Buffett, a major Apple investor, is also focusing his time and money in the best places.
- Here’s a look at what Jobs and Buffett hold in common, and why it paid off for them.
Warren Buffett sees Apple as the cornerstone of his stock portfolio. One of the reasons he appreciates the tech giant is its laser-sharp focus, a key component of Steve’s Jobs business philosophy that Buffett also embraces.
“People think that to focus is to say yes to things that need to be focused,” says Jobs. was once said Former Nike CEO Mark Parker said Carmine Gallo, author of Steve Jobs’ Secrets of Innovation, said:
“But it makes no sense,” the late Apple co-founder continued. “It means saying no to 100 other good ideas. I’m thinking.”
Jobs rejoined Apple as CEO in 1997 and lived up to his preaching. Reduced the company’s product range by 70% This allowed Apple to dedicate its design and marketing expertise to only its best ideas.
Buffett touted Apple’s extreme specialization during his speech. CNBC interview “Here’s a $60 billion company, whatever the revenue, and all of its products can be on your dining room table.”
Investors and his team have shown their admiration for Apple by pouring more than $30 billion into it from 2016 to 2018. Since then, the tech stock has more than quadrupled in price and is now trading near all-time highs. Hit products such as iPhone and AirPods.
Buffett’s company still owns 5.8% of Apple stock, worth more than $175 billion at the close of trading on Friday. Berkshire has a market capitalization of $746 billion, which means that almost a quarter of the total value of the conglomerate is tied to a single stock owned by the company.
Like Jobs, Buffett has repeatedly stressed the importance of concentration. “The difference between successful people and really successful people is that really successful people say no to almost everything,” the investor was quoted as saying.
Buffett has made focusing on Berkshire a priority. He has built the conglomerate as a vast, decentralized web of autonomous businesses that will allow him to practice “delegation on the verge of abdication” and focus on what he does best: allocating capital. It’s becoming
The company’s roughly $330 billion stock portfolio is also highly concentrated, with five companies including Apple and Coca-Cola accounting for more than 75% of the total. Furthermore, he aims to invest only in businesses and sectors that are within his “sphere of competence” or understanding, turning down all but his best opportunities.
Buffett has a “unique ability to say no to investment promoters, bubble profiteers, and well-intentioned but deceived brokers of all kinds,” author Roger Loewenstein said in “Buffett: He wrote in How to Make an American Capitalist.
The Berkshire chief’s business partner, Charlie Munger, even more ruthlessly rejects the opportunity. nicknamed him “Abominable Norman”
Apple’s focused focus on a handful of select products is an important part of Jobs’ legacy and has paid off enormously over the years. Similarly, for decades, Buffett has carefully focused his time and money, which has yielded huge profits from bets on Apple and others.